Question
1)Bond valuation--Semiannual interest: Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 14%
1)Bond valuation--Semiannual interest: Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 14% (7% paid semiannually) if the required return on similar-risk bonds is 13% annual interest. The present value of the bond is $ (blank). (Round to the nearest cent.)
2)Bond valuation--Quarterly interest: Calculate the value of a $5,000-par-value bond paying quarterly interest at an annual coupon interest rate of 14% and having 14 years until maturity if the required return on similar-risk bonds is currently a 16% annual rate. The present value of the bond is $ (blank). (Round to the nearest cent.)
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