Question
**Please note this is a two part question BUT I ONLY NEED PART B ANSWERED*** Question 11 The Garcia Companys bonds have a face value
**Please note this is a two part question BUT I ONLY NEED PART B ANSWERED***
Question 11 The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 18.6 percent. Assume interest payments are made semiannually.
A) Determine the present value of the bonds cash flows if the required rate of return is 18.6 percent.
Present Value= $ 1000
B) How would your answer change if the required rate of return is 11.5 percent? (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.)
Present Value= $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started