What is nominal after-tax terminal value

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1. LIAS Inc. bonds have a face value of $1,000, mature in 10 years, pay interest semiannually, and have a coupon rate of 9.0 percent. If the market rate of return is 6.0 percent, what is the current price of this bond?

$721

$1,056

$1,223

$955

$828

2. The purchase price on a piece of land is $650. The marginal tax rate is 8% and the nominal terminal value is $967. There is an inflation rate of 4% and a growth rate of 3%. What is the nominal after-tax terminal value?

$954.32

$941.64

$957.49

None of the answers are correct

Reference no: EM131933767

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