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(Bond valuation) Shelly Inc. bonds have a 10% coupon rate. The interest is paid semiannually, and the bonds mature in 8 years. Their par value
(Bond valuation) Shelly Inc. bonds have a 10% coupon rate. The interest is paid semiannually, and the bonds mature in 8 years. Their par value is $1000. If your required rate of return is 8%, what is the value of the bond? What is the value if the interest is paid annually? Note: answer to first question found on here but not second regarding value of interest if paid annually. Thanks!
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