The DESREUMAUX Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at

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The DESREUMAUX Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S has a maturity of one year. Interest is paid annually.

What will the value of each of these bonds when the going rate of interest is?

(1) 5 percent

(2) 7 percent

(3) 11 percent

Assume there is only one more interest payment to be made on Bond S.

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jun 29, 2018 11:30 AM

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The DESREUMAUX Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at

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Principles of Finance

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