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Winburn Sports & Entertainment Has an Outstanding $1,000 Par Value

Question 34

Multiple Choice

Winburn Sports & Entertainment has an outstanding $1,000 par value bond with a 11% coupon that pays SEMIANNUALLY at the end of each period.The bond matures in nine years.Bonds of similar risk have a required return of 10%.What is the market value of the Winburn bond?


A) $1,035.54
B) $1,057.59
C) $1,058.45
D) $1,073.05

Correct Answer:

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