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What happens if you pay less for the? bond

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Reference no: EM131808750

Bellingham bonds have an annual coupon rate of 13 percent and a par value of $1,000 and will mature in 5 years. If you require a return of 11 ?percent, what price would you be willing to pay for the? bond? What happens if you pay more for the? bond? What happens if you pay less for the? bond?

a. The price you would be willing to pay for the bond is ?__________ (Round to the nearest? cent.)

b. The bond is not an acceptable investment if you pay ( more/less) for the bond because the expected rate of return for the bond is (less/ greater) than your required rate of return.

Reference no: EM131808750

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