Compute the value of swanson bonds if your required rate of


1) Swanson Inc bonds have a 12% coupon rate with semi-annual coupon payments. they have 22 years to maturity and a par value of $1,000.

a) Compute the value of Swanson bonds if your required rate of return is 10%.

b) Suppose you decide to buy the bond, and immediately afterwards interest rates drop to 9.5%. How much value has the bond gained or lost?

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Financial Management: Compute the value of swanson bonds if your required rate of
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