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Calculate the value of a bond

Calculate the value of a bond that matures in 11 years and has a $1,000 par value. The annual coupon interest rate is 8% and the yield to maturity on a comparable risk bond is 13%. What would be the value of this bond if it paid interest semiannually?

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Finance Basics: Calculate the value of a bond

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate the value of a bond

Reference No:- TGS0673122

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Prepare a new contribution format segmented income statement

Q : Computing effective annual interest rate

Q : Find value of the preferred stock of given annual dividend

Q : What is the value of newport printing

Q : Calculate the value of a bond

Q : Calculate the basis of direct labor-hours

Q : Calculate a table of interest rates

Q : Contribution margin per service call

Q : What is the most should pay for the stock now

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate the value of a bond

Reference No:- TGS0673122

Recent Questions Asked Finance Basics

Q : Prepare a new contribution format segmented income statement

Q : Computing effective annual interest rate

Q : Find value of the preferred stock of given annual dividend

Q : What is the value of newport printing

Q : Calculate the value of a bond

Q : Calculate the basis of direct labor-hours

Q : Calculate a table of interest rates

Q : Contribution margin per service call

Q : What is the most should pay for the stock now

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