Humana inc is a for-profit american health insurance


Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. The company has a series of $1000 par value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 6%. Some bonds are due in four years while others are due in 10 years. If the required rate of return on bonds is 10%, what is the current price of:

a) The bonds with 4 years to maturity? PLEASE SHOW YOUR WORK

b) The bonds with 10 years to maturity?

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Financial Management: Humana inc is a for-profit american health insurance
Reference No:- TGS02411997

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