What is the value of bond mm motors

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Reference no: EM132383016

MM motors is selling an issue of bonds with a 10 year maturity, a $1000 par value, an 8% coupon rate. Payments of interest are to be made annually.

  1. What will be the price of this bond if the required rate of return is 12%
  2. Three years after the bonds were issued, the required rate of return fell 8%. At what price will the bonds now sell?

One year ago clark company issued a 10 year, 12% semi annual coupon bond at its par value of $100. What is the value of this bond today if the required rate of return is 9%

Reference no: EM132383016

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