What must be the minimum selling price now for the bond

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Reference no: EM13241986

Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,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 to make the desired return on the investment?

Reference no: EM13241986

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