Question: 9 . 5 ( Valuing bonds ) Red Plc bonds have a 6 percent annual coupon rate. The interest is paid semiannually, and the bonds

9.5(Valuing bonds) Red Plc bonds have a 6 percent annual coupon rate. The interest is paid semiannually, and the bonds mature in eight years. Their face value is 400. If the markets required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually?
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