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Present Value of the Bond Assignment | Homework For You

Question (1) (6 Marks) You are considering the purchase of a $ 1,500 face value of bond that pays 12% coupon interest per year and with maturity of 10 years, calculate the present value of the bond if:Homework For You
a) The Required rate of return (rrr) is 10%. (2 marks)
b) The Required rate of return (rrr) is 13%. (2 marks)
c) What do your answers to part (A) and (B) say about the relation between the present value and face value. (2 marks) Get Finance homework help today

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