Midland Utilities has an outstanding bond issue that will mature to its $1,000 par value in 15 years. The bond has a coupon rate of 11% and pays interest semiannually.
Part A - Find the value of the bond if the required return is 11%.
Part B - Indicate whether the bond is sold at a: discount, a premium or at its par value.
Part C - Find the value of the bond if the required return is 15%.
Part D - Indicate whether the bond is sold at a: discount, a premium or at its par value.
Part E - Find the value of the bond if the required return is 8%.
Part F - Indicate whether the bond is sold at a: discount, a premium or at its par value.