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Question Note: Answer should be typed with full calculations and in last justification... I know there are already answered this question on Chegg... But I
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Note: Answer should be typed with full calculations and in last justification... I know there are already answered this question on Chegg... But I need full explanation
Lahey Industries has an outstanding RM1,000 par value bond with an 8% coupon interest rate. The bond has 12 years remaining to its maturity date. Required: a) If interest is paid annually, calculate the value of the bond when the required return is (1) 7%, (ii) 8%, and (iii) 10%. b) Indicate for each case in part (a), determine whether the bond is selling at a discount, at a premium, or at its par value. c) Using the 10% required return, determine the bond's value when interest is paid semi - annually. Based on part (a) and (b) answers, assess the impact on bond holder. Justify yourStep by Step Solution
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