Find the bond-s value if required rate of return is given


Podunk Communications bonds mature in 6 1/2 years with a par value of $1,000. They pay a coupon rate of 9% with semi-annual payments. If the required rate of return on these bonds is 11% what is the bond's value?

1) $1,026.73

2) $973.76

3) $1,022.74

4) $908.83

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Finance Basics: Find the bond-s value if required rate of return is given
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