Compute the value of pet food company bonds

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1. Pet Food Company bonds pay an annual coupon rate of 11.72 percent. Coupon payments are paid semiannually. Bonds have 7 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 12.10 percent.

2. Two Years Future Value What is the future value of $7,000 deposited for two years earning 8% interest rate annually?

3. When examining a trucking company’s balance sheet, you don’t notice any trucks listed as assets. The trucks must be leased and the leases are classified as: operating leases. financial leases. nontax leases. capital leases.

Reference no: EM131822345

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