Question
Zhen Yi Computers has an outstanding issue of bond with a par value of $1,000, with an annual 12% coupon rate. (However, note that interest
Zhen Yi Computers has an outstanding issue of bond with a par value of $1,000, with an annual 12% coupon rate. (However, note that interest payments on this bond are paid semi-annually) The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming 14 percent rate of interest? (Please calculate the arithmetic solution and show your work) 1. Semi-annual coupon payment 2. Semi-annual required rate of return: 3. bond par value: 4. semi-annual time periods remaining until maturity: 5. Calculate the current market value of this bond:
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