Assume that coupon payments are made semiannually

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Reference no: EM131884428

A bond has a par value of $1,000, 6 years to maturity, and a coupon rate of 3.16%? Assume that coupon payments are made semiannually.

If the required rate of return is 5.54%, what is the value of the bond?

What is the bond’s value if the required rate of return increases to 6.31%?

What is the bond’s value if the required rate decreases to 4.31%?

Reference no: EM131884428

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