Question
1. To finance a new line of product, Larissa Toys has issued a bond with a par value of $1,000, coupon rate of 8 percent,
1. To finance a new line of product, Larissa Toys has issued a bond with a par value of $1,000, coupon rate of 8 percent, and maturity of 30 years.
a)Compute the price of the bond if the required return on the bond is 10% and interest is paid annually.
b)Compute the price of the bond if the required return on the bond is 10% and interest is paid semi-annually.
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
