Microsoft engine co has the following securiites

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Microsoft Engine Co. has the following securiites outstanding: i) 1,000 bonds that have 10 years to maturity and pay an annual coupon of 9 percent and $1,000 face value, ii) 2,000 shares of Consols that pays a coupon payment of $50 per year. The firm has estimated the following costs of capital for its financial securities: 9 percent for bonds and 10 percent for consols. What should be the total value of 1,000 bonds and 2,000 shares of Consols?

Reference no: EM13622204

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