Determine current value of bond if present market conditions

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Delta Healthcare has a bond issue outstanding with an annual coupon rate of 7 percent and 4 years remaining until maturity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. The bond pays interest annually.

B. Refer to problem #3. Suppose the bond had a semiannual coupon. Meaning, it pays interest every six months. Now what would be its current value?

Reference no: EM131972465

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