Determining the bond price of lima corporation


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)?

Note: Please show guided help with steps and answer.

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Accounting Basics: Determining the bond price of lima corporation
Reference No:- TGS0889949

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