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Bond value and changing required returns Midland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 12 years. The
Bond value and changing required returns Midland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 12 years. The bond has a coupon interest rate of 11% and pays interest annually. Find the value of the bond if the required return is (1) 11%, (2) 15%, and (3) 8%. Compare and contrast with your conclusion.
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