Determine the present value of the bond cash

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Reference no: EM13262002

The Garcia Company's bonds have a face value of $1000 will mature in ten years and carry a coupon rate of 16%. Assume interest payments are made semi-annually.

a. Determine the present value of the bond's cash flows if the required rate of return is 16 percent.

b. how would your answer change if the required rate of return is 12%?

Reference no: EM13262002

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