Kuhne & Nagel bonds have an 8 percent coupon rate. The interest is paid semiannually, and the

Question:

Kuhne & Nagel bonds have an 8 percent coupon rate. The interest is paid semiannually, and the bonds mature in 14 years. Their par value is $1,000. If your required rate of return is 6 percent, what is the value of the bond? What is the value if the interest is paid annually?

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