2- Assume the following information for an existing bond that provides annual coupon payments: ...
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Accounting
2- 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 = 14%
A- If the required rate of return by investors were 8 percent, what would be the present value of the bond?
B- If the required rate of return by investors were 11 percent, what would be the present value of the bond?
C- What is the present value of the bond?
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