Question
.Compu-Best Computers has an outstanding bond issue with a par value of $1,000 , with an annual 12% coupon rate. However, note that interest payments
.Compu-Best Computers has an outstanding bond issue with a par value of $1,000, with an annual 12% coupon rate.However, note that interest payments on this bond are paid semi-annually.The bond has 5 years remaining until maturity.What is the market value of this bond today, assuming a 10% annual required rate of return?
a.First, label the bond variables:
1.Semi-annual coupon payment (PMT):
2.Semi-annual required rate of return:
3.Bond par value:
4.Semi-annual time periods remaining until maturity:
b.Calculate the current market value of this bond:
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