Bond value and changing required returns

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Bond value and changing required returns. Midland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 14 years. The bond has a coupon interest rate of 13?% and pays interest annually.

a. Find the value of the bond if the required return is? (1) 13?%, ?(2) 17?%, and? (3) 10?%.

c. What two possible reasons could cause the required return to differ from the coupon interest? rate?

Reference no: EM131842505

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