Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the garcia companys bonds have a face value of $1,

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

80.2K

Verified Solution

Question

Accounting

The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 17.9 percent. Assume interest payments are made semiannually.

Determine the present value of the bonds cash flows if the required rate of return is 17.9 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: 1,000

How would your answer change if the required rate of return is 11.8 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:

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students