Question
Real Beverege, Inc. bonds have a 7% coupon rate with semiannual coupon payments. They have 12 years to maturity and a par value of $1,000.
Real Beverege, Inc. bonds have a 7% coupon rate with semiannual coupon payments. They have 12 years to maturity and a par value of $1,000. Compute the value of Real's bonds if investors' required rate of return is 5%.
A. $1,178.85
B. $926.34
C. $1,047.28
D. $957.31
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
