Compute the price of the bond if the required return

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To finance a new line of product, Larissa Toys has issued a bond with a par value of $1,000, coupon rate of 8 percent, and maturity of 30 years.

a) Compute the price of the bond if the required return on the bond is 10% and interest is paid annually.

b) Compute the price of the bond if the required return on the bond is 10% and interest is paid semi-annually.

Reference no: EM132507728

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