The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16.9 percent. Assume interest
The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16.9 percent. Assume interest payments are made semiannually. (a) Determine the present value of the bonds cash flows if the required rate of return is 16.9 percent. Answer -
The Answer is $ 1000.
How would your answer change if the required rate of return is 11.9 percent?
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Authors: Erik Hofman, Urs Magnus Strewe, Nicola Bosia
1st Edition
3319623702, 978-3319623702
