What happens to the value if the markets required yield to


Acme, Inc. issues 30 year, par value$1,000 bonds that pay $120 annually. The market price for the bonds is $950. The market's required yield to maturity on a comparable risk bond is 12%

a. What is the value of the bond using the excel formula ?

b. What happens to the value if the market's required yield to maturity on a compatible risk bond increases to 14% or decreases to 8% using the excel.

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Financial Management: What happens to the value if the markets required yield to
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