Planning to issue some bonds

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Reference no: EM13948538

XYZ Company is planning to issue some bonds. The bonds, with a $5,000 par value and the coupon rate of 12% will mature in 10 years. The interest will be paid semi annually.

Suppose two years later from the original issuing date, the going rate in the market went down to 8%. What would be the value of the bond be at this time?

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Reference no: EM13948538

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