Total present value of the bond, Finance Basics

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Total present value of the bond

Problem:

The Berkshire Hathaway Group has just issued a $100,000 par value bond paying 6% interest with 8 years till maturity. Assuming the current yield on the bond is 10%.

Requirement:

Question 1: What is the total present value of the bond? Please provide step by step solution and all calculation.

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Finance Basics: Total present value of the bond

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Finance Basics: Total present value of the bond

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