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Determine the price of the bond today

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Reference no: EM132684030

The Garcia Company's bonds have a face value of $1000, will mature in 10 years, and carry a coupon rate of 6%. Assume that interest payments are made semi-annually.

Problem 1: Determine the price of the bond today if the investor required rate of return is 7.2%.

Problem 2: Determine the price of the bond today if the investor required rate of return is 5.8%.

Reference no: EM132684030

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