What is the current value of one the bonds

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Question 1: Due to a number of lawsuits related to an oil spill, the BP company has recently experienced a market revaluation. The firm has bonds outstanding that were issued 10 years ago at their par value of $1,000. The bonds have 15 years to maturity and a coupon rate of 8 percent, with interest paid semiannually. The required return on these bonds has increased to 16 percent. What is the current value of one these bonds?

Reference no: EM132503247

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