Calculation of issue value of bond considering time value

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Calculation of issue value of bond considering time value of money

Wilson Company will issue $300,000,000 of 7%, $1000 Par bonds on November 15, 2004. The bonds will pay interest semiannually and mature on November 15, 2011.

Without doing the calculation would the value of the bond go up, go down or stay the same if the required interest rate increased to 12%. Explain.

Reference no: EM13356943

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