Determine the present value of the bonds

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Reference no: EM13286064

The Garcia company's bonds have a face value of $1,000, will mature in ten years, and carry a coupon rate of 16 percent. Assume interest payments are made semi-annually.

a.Determine the present value of the bonds cash flows if the required rate of return is 16.64 percent.

b.How would your answer change if the required rate of return is 12.36 percent?

Reference no: EM13286064

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