Companys bonds have a 10 coupon rate with semi-annual


Company's bonds have a 10% coupon rate with semi-annual coupon payments. They have 12 and 1/2 years to maturity and a par value of $1,000. Compute the value of Swanson's bonds if investors' required rate or return is 8%. Please show work!

Ans: $1,156.22, $1,239.33, $1,137.10, $1,084.44

 

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Finance Basics: Companys bonds have a 10 coupon rate with semi-annual
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