Find the bond''s value when interest is paid semi-annually

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Bond valuation: Lahey Industries has outstanding a $1,000 par-value bond with an 8% coupon interest rate. The bond has 12 years remaining to its maturity date.
(a). If interest is paid annually, find the value of the bond when the required return is (1) 7%, (2) 8%, (3) 10%.
(b) Indicate for each case in part a whether the bond is selling at a discount, at a premium, or at its par value.
( c) Using the 10% required return, find the bond's value when interest is paid semi-annually.

Reference no: EM13315126

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