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What is the current value of these bonds

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Question - Wildhorse Inc. has seven-year bonds outstanding that pay a 13 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 6.050 percent. What is the current value of these bonds? Assume annual coupon payments.

Carol Garcia is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 10.7 percent. Assume annual coupon payments. What is the current value of this bond?

Reference no: EM133011425

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