Question
Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 13% (6.5% paidsemiannually) if
Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 13% (6.5% paidsemiannually) if the required return onsimilar-risk bonds is 14% annual interest (7% paidsemiannually).
The present value of the bond is $______?
All the information is there.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
