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Reference no: EM132386231

The following RJR Nabisco bond is listed in a recent issue of the Wall Street Journal:

RJR Nb 8

Cur Yld 7.9

Vol 60

Close 101.25

Net Change +1.125

This $1,000 par value bond has 4 years to maturity and makes semi-annual coupon interest payments. If your required rate of return is 9.5%, what would be the bond's intrinsic value?

Reference no: EM132386231

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