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Outstanding bond issue with a par value

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Compu-Best Computers has an outstanding bond issue with a par value of $1,000, with an annual 12% coupon rate. However, note that interest payments on this bond are paid semi-annually. The bond has 5 years remaining until maturity. What is the market value of this bond today, assuming a 10% annual required rate of return?

a. First, label the bond variables:

1. Semi-annual coupon payment (PMT):

2. Semi-annual required rate of return:

3. Bond par value:

4. Semi-annual time periods remaining until maturity:

b. Calculate the current market value of this bond:

Reference no: EM132505572

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