Flora cos bonds maturing in 16 years pay 15 percent


Flora Co.'s bonds, maturing in 16 years, pay 15 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 8 percent, what is the value of the bond? How would your answer change if the interest were paid annually?

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Finance Basics: Flora cos bonds maturing in 16 years pay 15 percent
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