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I need help Solving this question thank you! (Bond valuation relationships) A bond of Telink Corporation pays $100 in annual interest, with a $1,000 par
I need help Solving this question thank you!
(Bond valuation relationships) A bond of Telink Corporation pays $100 in annual interest, with a $1,000 par value. The bonds mature in 30 years. The market's required yield to maturity on a comparable-risk bond is 9 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 14 percent or (ii) decreases to 4 percent? c. Interpret your findings in parts a and b. a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 9 percent? $ (Round to the nearest cent.)
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