Cashflow with non-annual compounding tvm problem

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After performing due diligence on BestBuy, you are advising the company to issue some bonds. How much would your investment bank price one BestBuy bond today, if the bond pays $30 coupon payment every 6 months for 6 years (first payment due 6 months from now) and a final payment of $1000 at the end of year 6? Market interest rate for similarly graded bonds with similar time to maturity is 5% per year. Tip: This is an uneven cashflow with non-annual compounding TVM problem.

Reference no: EM133070360

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