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Bond valuationSemiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.(Click on the icon
Bond valuationSemiannual interest
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Bond | Par Value | Coupon interest rate | Years to maturity | Required stated annual return | |||||
A | $500 | 11 | % | 8 | 9 | % | |||
B | 500 | 12 | 20 | 13 | |||||
C | 500 | 13 | 5 | 16 |
What is the value of bond A? (Round to the nearest cent.)
What is the value of bond B? (Round to the nearest cent.)
What is the value of bond C? (Round to the nearest cent.)
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