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Bond value and changing required returns: Midland Utilities has a bond issue outstanding that will mature to its $1,000 par value in 13 years. The
Bond value and changing required returns: Midland Utilities has a bond issue outstanding that will mature to its $1,000 par value in 13 years. The bond has a coupon interest rate of 13% and pays interest annually.
a. Find the bond value, if the required return is (1)13%,(2)17%,and (3)10%.
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