Calculate the value of the bond

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New generation public utilities issued a bond with $1,000 par value that pays $30 in annual interest. It matures in 20 years. your required rate of return is 4 percent.

a. Calculate the value of the bond

b. How does the value change if your required rate of return (1) increases to 7 percent or (2) decreases to 2 percent?

Reference no: EM132343805

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