Business
Business, 19.06.2020 19:57, tyde4209

Last year, you purchased a 20-year bond from a snack food company -- let's call it Couch Potato -- with a face value of $1000 and an interest rate of 6% per year. This year, new bonds sold by other snack food companies with similar risk characteristics to Couch Potato are currently offering 8% interest per year. What will be the approximate value at which you could sell your Couch Potato bond today? (This is a concept question; you should be able to estimate the answer without doing the exact calculation.)

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Last year, you purchased a 20-year bond from a snack food company -- let's call it Couch Potato -- w...

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