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The Garcia Companys bonds have a face value of $1,000, will mature in 10 years,...

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Question

Finance

The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16.8 percent. Assume interest payments are made semiannually.

(a)

Your answer is correct.
Determine the present value of the bonds cash flows if the required rate of return is 16.8 percent. (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.)
Present value $

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(b)

How would your answer change if the required rate of return is 12.0 percent? (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.)
Present value $

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