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Calculate the selling price of the given bonds

Question: The current market rate for a bond is 8%. Calculate the selling price of the following bonds assuming annual interest payments:

A. 5% bond with 2 years until maturity.
B. 5% bond with 5 years until maturity.
C. 10% bond with 5 years until maturity.

Which bond is currently the most valuable? Why?

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Finance Basics: Calculate the selling price of the given bonds

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Finance Basics: Calculate the selling price of the given bonds

Reference No:- TGS02078385

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