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Present value of the bond for annual coupon payments

Assume the following information for an existing bond that provides annual coupon payments:

Par value = $1,000
Coupon rate = 11%
Maturity = 4 years
Required rate of return by investors = 11%

Q1. What is the present value of the bond?

Q2. If the required rate of return by investors were 14% instead of 11%, what would be the present value of the bond?

Q3. If the required rate of return by investors were 9%, what would be the present value of the bond?

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Finance Basics: Present value of the bond for annual coupon payments

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Finance Basics: Present value of the bond for annual coupon payments

Reference No:- TGS02056560

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