The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually.
						a. Determine the present value of the bonds cash flows if the required rate of return is 16 percent.
						b. How would your answer change if the required rate of return is 12 percent?
Answers:
	Enter the answers in blue shaded cells
	Step 1:	a. PV 16% rate of return	b. PV 12% rate of return
	Coupon Rate	F	F
	Years to maturity	F	F
	Number of coupon payments per year	F	F
	Par Value	F	F
	Market Rate	F	F
	Step 2:
	Compute periodic interest rate	C	C
	Compute number of periods	C	C
	Compute coupon cash flow	C	C
	Step 3:
	Bond price (use PV)	C	C