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I am having trouble trying to work this problem. Please help. Cox Media Corporation pays a coupon rate of 8 percent on debentures that are
I am having trouble trying to work this problem. Please help.
Cox Media Corporation pays a coupon rate of 8 percent on debentures that are due in 10 years The current yield to maturity on bonds of similar risk is 6 percent The bonds are currently callable at Sl. 110. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds use Appendix 8 and Apoendix O for an approximate answer but calculate your final answer using the formula and financial calculator methody a. Find the market value of the bonds using semiannual analysis. (Ignore the call price in your answer. Do not round intermediate calculations and round your answer to 2 decimal places.) Pri of the b. Do you think the bonds will sell for the price you arrived at in part a?
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