What is the theoretical market value of the bonds

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A company pays an 11% coupon rate on debentures that are due in 20 years. Current yield to maturity is 8%. The bonds are currently callable at $1,060. The theoretical value of the bonds will be equal to the present value of the expected cash flow.

What is the theoretical market value of the bonds using semiannual analysis?

 

Reference no: EM13301412

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