A company pays an 11 coupon rate on debentures that are due, Ask an Expert

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A company pays an 11% coupon rate on debentures that are due in 20 years. Current yield to maturity is 8%. The bonds are currently callable at $1,060. The theoretical value of the bonds will be equal to the present value of the expected cash flow.

What is the theoretical market value of the bonds using semiannual analysis?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9880736

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