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n Mak Company's bonds have a 14 percent coupon rate. The interest is paid annually and the bonds mature in 12 years. Their par value
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Mak Company's bonds have a 14 percent coupon rate. The interest is paid annually and the bonds mature in 12 years. Their par value is $ 1,000. Market interest rate is 10 percent. (a) Calculate value of each bond at present. If bonds are selling at $ 1,100, would you purchase the bonds? (b) Does the value of bond increase or decrease if market interest increasesStep by Step Solution
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