What is the price you are willing to pay for the bond

Assignment Help Financial Management

Reference no: EM131571228

A. Company LN issued a bond with an annual coupon rate of 10% with interest paid annually. The bond matures in 15 years. The par value of the bond is $1,000. If your required return for this type of bond is 15%, what is the price you are willing to pay for the bond? If your required return was 5%, what is the price you are willing to pay for the bond?

B. Compute the price at 15% and 5%, if the coupon interest is paid semiannually.

Reference no: EM131571228

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