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You have the following bond maturing in 4 years: Face Value = 1.000$; Semiannual dividends = 30$; Annual Interest rate= 4% Compute the PV of
You have the following bond maturing in 4 years:
Face Value = 1.000$;
Semiannual dividends = 30$;
Annual Interest rate= 4%
- Compute the PV of the cash flows?
- What will happen to the bond price if the interest rate increases to 6%?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
