Calculate the market value of his bonds

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Reference no: EM131286922

How would you calculate the following without excel?

On June 1, 2012, he purchased $76 Million of Loatman Corp’s 8%, 20-year bonds at face value.

Loatman has paid the annual interest due on the bonds regularly. On June 1, 2016, market interest rates had risen to 10%, and Chauncey is considering selling the bonds.

Required:

Calculate the market value of his bonds on June 1, 2016.

Reference no: EM131286922

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