The garcia company''s bonds , Business Economics

The Garcia Company's bonds have a face value of $1,000, will mature in ten years, and carry a coupon rate of 16 percent. Suppose interest payments are made semi-yearly.

a. Verify the present value of the bond's cash flows if the needed rate of return is 16.64   percent.

b. How would your answer change if the needed rate of return is 12.36 percent?

 

Posted Date: 3/28/2013 4:17:06 AM | Location : United States







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