How demonstrate what is the value of the bond

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Problem 1: A zero coupon bond has a face value of $300 000 and 5 years to maturity. Interest accrues on the bond quarterly. If the required return is 8% p.a., what is the value of the bond?

Problem 2: BlackBean Ltd has issued bonds with 25 years to maturity and a face value of $1000. The coupon payment will be 5% p.a. If the required rate of return is 7% p.a., what is the intrinsic value of the bond?

Reference no: EM132614944

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