What market price will the bond sell

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Reference no: EM132068732

1. A five-year corporate bond with a face value of $10,000 pays interest at a coupon rate of 5.0%. The required return for investing in this bond is 4.0%. At what market price will the bond sell if the interest is paid semi-annually?

2. Explain if firm management is not also part of the Board of Directors, what problems could occur?

3. What is the value in year 5 of a $2,700 cash flow made in year 8 if interest rates are 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.

Value in year 5:_________

Reference no: EM132068732

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