Question
1. Calculate the value of a bond that matures in 18 years and has a $1000 par value. The annual coupon interest rate is 12%
1. Calculate the value of a bond that matures in 18 years and has a $1000 par value. The annual coupon interest rate is 12% and the market's required yield to maturity on a comparable risk bond is 9 percent.
The value of the bond is $____ (round to nearest cent)
2. A bond that matures in 11 years has a $1000 par value. the annual coupon interest rate is 11% and the market's required yield to maturity on a comparable risk bond is 14%. What would be the value of this bond if its paid interest annually? What would be the value of this bond if it paid interest semiannually? (ROUND TO NEAREST CENT)
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The Venture Capital Investment Process
Authors: Darek Klonowski
1st Edition
0230612881, 023011007X, 9780230612884, 9780230110076
