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PT BYEBYE, Tbk issues new bonds that mature in 25 years. The bond interest rate is 12% with a nominal value of Rp. 1,000,000.- per
PT BYEBYE, Tbk issues new bonds that mature in 25 years. The bond interest rate is 12% with a nominal value of Rp. 1,000,000.- per bond. a) What is the value of the bond if the required rate of return is 10%, 15% and 12%. b) Draw the results of your calculations, the X axis is the level of profit required and the Y axis depicts the bond value. c) Discuss the results of your calculations, especially the relationship between the required level of profit and the bond value.
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