1. Flora? Co.'s bonds, maturing in 11 ?years, pay 14 percent interest on a $1,000 face value.? However, interest is paid semiannually. If your required rate of return is 9 ?percent, what is the value of the? bond? How would your answer change if the interest were paid? annually?
2. Calculate the value of a bond that will mature in 18 years and has a ?$1,000 face value. The annual coupon interest rate is 9 ?percent, and the? investor's required rate of return is 14 percent.
3. ExxonMobil 9?-year bonds pay 12 percent interest annually on a ?$1,000 par value. If the bonds sell at $1,175, what is the? bonds' expected rate of? return?