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(Bond valuation) Flora Co.'s bonds, maturing in 11 years, pay 15 percent interest on a $1,000 face value. However, interest is paid semiannually. If your
(Bond valuation)
Flora Co.'s bonds, maturing in 11 years, pay 15 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 11 percent, what is the value of the bond? How would your answer change if the interest were paid annually?
If the interest is paid semiannually, the value of the bond is $___.
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