Compute the value of flower valley company bonds

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Problem 1: Flower Valley Company bonds have a 7.14 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 24 years from now. Compute the value of Flower Valley Company bonds if investors' required rate of return is 8.05 percent.

Problem 2: Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,371. It has an annual coupon rate of 10 percent, paid semiannually, and has 9-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

Reference no: EM132989734

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