Assume an annual coupon but 20 years remaining to maturity

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Barkley corportation has a bond issue outstanding with an annual coupon rate of 7% and years remaining until maturity. the par value of the bond is $1,000.

A.) What is the price of the bond if present market conditions justify a 14% required rate of return. The bond pays interest annually

B.) What would be the current value of the bond if the bond has a semiannual coupon?

C.) Assume an annual coupon but 20 years remaining to maturity. What is the current value under these conditions? Also what is the bond's current yield?

Reference no: EM13619645

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