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What is the bond price for bavarian sausage

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Reference no: EM132760076

Problem 1: Bavarian Sausage just issued a 10 year 7% coupon bond. The face value of the bond is $1,000 and the bond makes semi-annual coupon payments. If the required return on the bond is 10% pa compounding half-yearly, what is the bond's price?

a. $629.21

b. $813.07

c. $600.60

d. $1,000.00

e. $884.17

Reference no: EM132760076

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