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Calculate the value of the following bond ( 6 points ) Yellow company issued a six year, 8 % $ 2 0 0 , 0

Calculate the value of the following bond

(6

points

)

Yellow company issued a six year,

8 %

200, 000

bond. It pays interest quarterly. The market rate is

11 % .

Requirements:

Calculate the value of the bond

Fully explain if the bond ill b purchased at a premium, discount or at par and WHY.

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