Question
Bond valuation relationship: a bond of Telink Corp. pays $100 in annual interest, with a $1,000 pay value. The bonds mature in 10 years. The
Bond valuation relationship: a bond of Telink Corp. pays $100 in annual interest, with a $1,000 pay value. The bonds mature in 10 years. The market's required yield to maturity on a comparable risk bond is 9%.
A what is the value of the bond if the market's required yield to maturity on a comparable risk bond is 9%? $_____ (round to the nearest cent)
b1. what is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 14%? $_____ (round to the nearest cent)
b2 what is the value of the bond if the market's required yield to maturity on a comparable risk bond decreases to 5% $_____ (round to the nearest cent)
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