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What would be a fair price for these bonds

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Reference no: EM132993976

Question - A large retailer decides to issue 20-year bonds with a face value of $100 and semi-annual coupon payments. The return on other bonds of a similar risk is 7%. The company decides to offer 8% coupon rate to attract investors. What would be a fair price for these bonds?

A. $196.09

B. $109.59

C. $107.98

D. $110.68

Reference no: EM132993976

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