What would be the value of the bond in this case

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XYZ Company is planning to issue some bonds. The bonds, with a $5,000 par value and the coupon rate of 12% will mature in 10 years. The interest will be paid semi annually.

Suppose two years later from the original issuing date, the going rate in the market went up to 16%. What would be the value of the bond in this case?

Reference no: EM13809146

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