Solution-What is the value of the bond if the required rate

What is the value of the bond if the required rate of return

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Reference no: EM132523882

To expand its business, the Austin factory would like to issue a bond with par value of $1,000, coupon rate of 10 percent, and maturity of 10 years from now.

a. What is the value of the bond if the required rate of return is 8 percent?

b. What is the interest rate at which the value of the bond is going to be the same as par value ($1000)?

c. Find out the YTM if the bond is currently traded at $887?

Reference no: EM132523882

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What is the value of the bond if the required rate of return

Reference no: EM132523882

Reference no: EM132523882

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