E3.5. Valuing Bonds (Easy) 8. A firm issues a zero-coupon bond with a face value of $1,000,
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E3.5. Valuing Bonds (Easy) 8. A firm issues a zero-coupon bond with a face value of $1,000, maturing in five years. Bonds with similar risk are currently yielding 5 percent per year. What is the value of the bond?
b. A firm issues a bond with a face value of $1,000 and a coupon rate of 5 percent per year, maturing in five years. Bonds with similar risk are currently yielding 5 percent per year. What is the value of the bond?
c. A firm issues the same bond as in part
(b) but with an annual coupon rate of 4 percent per year. What is the value of the bond?
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Related Book For 
Financial Statement Analysis And Security Valuation
ISBN: 9780071267809
4th International Edition
Authors: Penman-Stephen-H, Steven Penman
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