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Billy Gates Industries issues bonds with a 6% coupon rate and $1000 face value. Interest is paid semi-annually and the bond has 20 years to
Billy Gates Industries issues bonds with a 6% coupon rate and $1000 face value.
Interest is paid semi-annually and the bond has 20 years to maturity.
However, the bond does not pay the first two coupon payments and instead makes these payments at maturity.
If investors require an 8% return, what is the bonds value?
Please work it out without the use of a Financial Calculator or excel if possible
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