How much would these bonds sell for today

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Reference no: EM131987560

1. A shipping company sold an issue of 14-year $1,000 par bonds to build new ships. The bonds pay 6.75% interest, compounded semiannually. Today's required rate of return is 8.7%. How much should these bonds sell for today? Round to two decimal places.

2. Assume a company has an issue of 17-year $1,000 par value bonds that pay 7.5% interest, compounded annually. Further, assume that today's required rate of return on these bonds is 6%. How much would these bonds sell for today? Round to two decimal places.

Reference no: EM131987560

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