Use annual compounding to calculate current price of bond

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Reference no: EM1356358

Nissan Corporation has a $1,000 par value bond outstanding paying annual interest of 7%. The bond matures in 20 years. The going rate of interest is 9% for this bond. Calculate the current price of the bond using annual compounding.

a. $850.00

b. $900.00

c. $817.40

d. $820.00

e. $825.00

Reference no: EM1356358

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