Principles of financial management hw 4 question 20

= Homework: HW 4 (Ch. 6 & 7) Question 20, Problem 7-... Part 1 of 2 HW Score: 78.33%, 15.67 of 20 points O Points: 0 of 1 Save (Bond valuation) Xerox issued bonds that pay $80.00 in interest each year and will mature in 7 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a return of 6 percent on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually? a. If the interest is paid semiannually, the value of the bond is $ (Round to the nearest cent.)