Question: 3) Net Present Value PAR VALUE: $3,000,000 N= 2 years COUPON RATE= 8% N.A.Q. Bond Emission Date: 6/10/2020 _ _ _ _ _ _ _

3) Net Present Value

PAR VALUE: $3,000,000

N= 2 years

COUPON RATE= 8% N.A.Q.

Bond Emission Date: 6/10/2020

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Buy on: 7/10/2021

Opportunity Rate: 7% EA

What is the new NPV?

4) Net Present Value

PAR VALUE: $6,000,000

N= 3 years

COUPON RATE: 10% N.A.Q.

Bond Emission Date: 6/10/2021

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Buy on: 2/10/2023

Opportunity Rate: 9% EA

What is the new NPV?

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