Problemlima corporation has decided to issue 30 year bonds, Ask an Expert

Accounting

Problem:

Lima Corporation has decided to issue 30 year bonds with a par value of $1,000, a coupon rate of 4% with interest being paid once per year. The investor's required rate of return is 2.5%.

Required:

Question: What should this bond be priced at (sell for)?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171127

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