Chapter 7

Round to the nearest cent

(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 9 percent. The interest is paid semiannually, and the bonds mature in 13 years. Their par value is $1,000. If your required rate of return is 13 percent, what is the value of the bond? What is the value if the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $1 . Round to the nearest cent.) b. If the interest is paid annually, the value of the bond is $ (Round to the nearest cent.)