Market required yield to maturity on compatible risk bond

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Acme, Inc. issues 30 year, par value$1,000 bonds that pay $120 annually. The market price for the bonds is $950. The market's required yield to maturity on a comparable risk bond is 12%

a. What is the value of the bond using the excel formula ?

b. What happens to the value if the market's required yield to maturity on a compatible risk bond increases to 14% or decreases to 8% using the excel.

Reference no: EM131848043

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