Interest rate on comparable new issues

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Reference no: EM13976681

The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 9% annual rate.

What is the bond's price today if the interest rate on comparable new issues is 12%? Round the answer to the nearest cent.

What is the price today if the interest rate is 8%? Round the answer to the nearest cent.

What is the price today if the interest rate is 9%? Round the answer to the nearest cent.

$ 1,000.00

Reference no: EM13976681

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