Explain if interest payments are made semiannually

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Reference no: EM1365081

A corporate bond bearing a 10% coupon rate will mature in 10 years. ($1000. FACE)

(a) If the current market rate is 8%, what is the current value of the bond (assume annual interest payments)?

(b) If interest payments are made semiannually, what is the value of the bond?

Reference no: EM1365081

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