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Hello, Can anyone help on the question below, Thank you!! 40.-42. Crown Enterprises recently issued a bond that has a $1,000 face or par value.
Hello,
Can anyone help on the question below, Thank you!!
40.-42. Crown Enterprises recently issued a bond that has a $1,000 face or par value. This bond has a coupon interest rate of 6% and has a life of 8 years. If interest is paid annually on this bond, calculate the market value today at t 0 of this bond, assuming a required return for this bond of 5%. Now, assume that the required return on this bond increases to 8%. Assume also that the bond pays interest semi-annually, rather than annually. Given this new information, calculate the market value of this bond today at t- 0. aStep by Step Solution
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