What is the theoretical market value of the bonds using


A company pays an 11% coupon rate on debentures that are due in 20 years. Current yield to maturity is 8%. The bonds are currently callable at $1,060. The theoretical value of the bonds will be equal to the present value of the expected cash flow.

What is the theoretical market value of the bonds using semiannual analysis?

 

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Finance Basics: What is the theoretical market value of the bonds using
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