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Valuation- Corporate Bond

Question: A $1,000 corporate bond with 20 years to maturity pays a coupon rate of 7% (semi-annual) and the market required rate of return is a) 6.6% b) 13%.

Required:

What is the current selling price for a) and b)? (Please show work so I can understand the steps) Explain your answers and provides examples.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91806504

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