Bond valuation flora cos bonds maturing in 16 years pay 12


(Bond valuation) Flora Co.'s bonds, maturing in 16 years, pay 12 percent interest on a $ 1,000 face value. However, interest is paid semiannually. If your required rate of return is 16 percent, what is the value of the bond? How would your answer change if the interest were paid? annually?

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Financial Management: Bond valuation flora cos bonds maturing in 16 years pay 12
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