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you are caught in as a financial analyst to appraise bonds of American Airlines Problem 2 You are called in as a financial analyst to

you are caught in as a financial analyst to appraise bonds of American Airlines
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Problem 2 You are called in as a financial analyst to appraise the bonds of American Airlines Inc. The $1,000 par value bonds have a quoted annual interest rate of 8%, which is paid semiannually. The required interest rate on the bonds is 6% annual interest. There are 20 years to maturity a. Compute the bond's value based on semiannual analysis 6x to 4%. What would be the bonds' value? c. Suppose that two years after the bonds were issue (see part al, the required interest rate rose from 6X to 10%. What would be the bond's value? d. What wild be the bond's value at maturity? Page 2 of 3 403 words DD

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