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3-3 Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 12 years
3-3
Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 12 years remaining to maturity, and have a required rate of return of 11.5 percent. a. The bond has a 7.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) b. The bond has a 9.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) c. The bond has a 11.5 percent coupon rate. (Do not round intermediate calculations.)Step by Step Solution
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