Bond valuation assume the information for existing bond

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Reference no: EM131197780

Bond Valuation Assume the following information for an existing bond that provides annual couponpayments:

Par value =$1,000

Coupon rate = 11%

Maturity =4 years

Required rate of return by investors = 11%

a. What is the present value of the bond?

b. If the required rate of return by investors were14 percent instead of 11 percent, what would be thepresent value of the bond?

c. If the required rate of return by investors were9 percent, what would be the present value of the bond?

Reference no: EM131197780

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