What is the value of the bond assuming a 14 percent market

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Reference no: EM132064907

Question

Zhen Yi Computers has an outstanding issue of bonds with a par value of $1,000, which have a 12 percent annual coupon rate, with interest being paid semi-annually.

The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming a 14 percent market rate of interest?

Reference no: EM132064907

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