7-9A. (Bond valuation) Telink Corporation bonds pay $110 in annual interest, with a $1,000 par value. The

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7-9A. (Bond valuation) Telink Corporation bonds pay $110 in annual interest, with a $1,000 par value. The bonds mature in 20 years. Your required rate of return is 9 percent.

a. Calculate the value of the bond.

b. How does the value change if (I) your required rate of return (k) increases to 12 percent or (il) decreases to 6 percent?

c. Interpret your findings in parts

(a) and (b).

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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Question Posted: Jul 24, 2024 12:01 PM

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7-9A. (Bond valuation) Telink Corporation bonds pay $110 in annual interest, with a $1,000 par value. The

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Financial Management Principles And Applications

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