What would be the bond value

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Reference no: EM132036858

Assume Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value.

a. Suppose that two years after the bonds were issued, the required interest rate (market interest rate) fell to 7 percent. What would be the bond's value?

b. Suppose that two years after the bonds were issued, the required interest rate rose to 13 percent. What would be the bond's value?

Reference no: EM132036858

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