What would the present value of that bond

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Reference no: EM132052814

Alpha Corporation has issued a bond to help finance its new stadium. This bond’s coupon rate is 6.5% and currently has 7 years remaining until maturity. The par value of the bond is $20,000.

a. What would the present value of that bond be if the nominal interest rate was currently at 4.5%?

b. What if the nominal interest rate was at 8.5%?

Reference no: EM132052814

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