Find the value of the bond when the required return

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Lahey Industries has outstanding a $1,000 par-value bond with an 8% coupon interest rate. The bond has 15 years remaining to its maturity date.

Question a. If interest is paid annually, find the value of the bond when the required return (yield to maturity) is (1) 5%, (2) 8%, and (3) 11%?

Question b. Indicate for each case in part a whether the bond is selling at a discount, at a premium, or at its par value.

Reference no: EM132492644

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