What must be the minimum selling price

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Mr. Smith Wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago, the bond was purchased at $900. At least a 9% annual return on the investment is desired. What must be the minimum selling price now for the bond in order for Mr. Smith to make the desired return on the investment after making 8 interest payments?

Reference no: EM13198785

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