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Twin Oaks. Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value

Twin Oaks. Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest annually.
* Determine the current value of the bond if present market conditions justify a 14 percent required rate of return.
* Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate of return. However, the actual rate would be slightly less than 7 percent because a semiannual bond is slightly less risky than an annual coupon bond.)
* Assume that Twin Oaks' bond had a semiannual coupon but 20 years remaining to maturity. What is the current value under these conditions?
(Again, assume a 7 percent semiannual required rate of return, although the actual rate would probably be greater than 7 percent because of increased price risk.)
Please enter all answers in the following format: $1,234.56 or $123.45.
Negative answers: ($1,234.56) or ($123.45).
Part A - Bond Value: $796.04
Part B - Bond Value: Is not $791.01 or $872.67.
Part C - Bond Value: $533.39

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