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Jimmy has a bond with a $1,000 face value and a coupon rate of 8.5% paid semiannually. It has a five-year life. If investors are
Jimmy has a bond with a $1,000 face value and a coupon rate of 8.5% paid semiannually. It has a five-year life.
- If investors are willing to accept a 12 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? Show your work.
- What is the impact of paying interest semi-annually rather than annually? Explain.
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
1119754054, 9781119754053
