A bond of telink corporation pays 110 in annual interest, Ask an Expert

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A bond of Telink Corporation pays ?$110 in annual? interest, with a ?$1,000 par value. The bonds mature in 20 years. The? market's required yield to maturity on a? comparable-risk bond is 9 percent.

a. Calculate the value of the bond.

b. How does the value change if the? market's required yield to maturity on a? comparable-risk bond? (i) increases to 12 percent or? (ii) decreases to 66 ?percent?

c. Interpret your findings in parts a and b.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92264645

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