Risky co has 10-year bonds outstanding with a coupon rate, Financial Management

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Risky co has 10-year bonds outstanding with a coupon rate

Risky Co has 10-year bonds outstanding with a coupon rate of 12% and face value of $1000. Interest is paid semi-annually and the investor's required rate of return is 18% per year (due to the company's high risk of default). What is the value of a RiskyCo bond?

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Financial Management: Risky co has 10-year bonds outstanding with a coupon rate

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Financial Management: Risky co has 10-year bonds outstanding with a coupon rate

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