Determine present value of bond cash flow for garcia company

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The Garcia Company's bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 17.2 percent. Assume interest payments are made semiannually.

Problem (a) Determine the present value of the bond's cash flows if the required rate of return is 17.2 percent. (Round final answer to nearest dollar amount.)

Problem (b) How would your answer change if the required rate of return is 11.8 percent? (Round final answer to nearest dollar amount.)

Reference no: EM132968046

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