Question
Arizona Public Utilities issued a bond that pays $70 in interest, with a $1,000 par value and matures in 25 years. The markers required yield
Arizona Public Utilities issued a bond that pays $70 in interest, with a $1,000 par value and matures in 25 years. The markers required yield to maturity on a comparable-risk bond is 8 percent. (Round to the nearest cent.)
Question | Answer |
a. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond is 8 percent? | $ |
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b. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond increases to 11 percent? | $ |
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c. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent?
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