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What is the value of the bond

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Question - Flora Co.'s bonds, maturing in 8 years, pay 6 percent interest on a $1,000 face value. However, interest is paid semi-annually. If your required rate of return is 12 percent, what is the value of the bond? How would your answer change if the interest were paid annually?

a. If the interest is paid semiannually, the value of the bond is?

b. If the interest is paid annually, the value of the bond is?

Reference no: EM132836383

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