# A 6% Transocean bond with annual coupon payments and a $1,000 par value has 12 years to maturity. If investors

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## Question:

A 6% Transocean bond with annual coupon payments and a $1,000 par value has 12 years to maturity. If investors in this bond require a 10% annual rate of return, what is the market value of this bond? (Note that the rate preceding the firm name is the annual coupon rate.)

**Related Book For**

## Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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**Question Details**

Chapter #

**16**- Long-Term Debt and Lease FinancingSection: Mini case

Problem: 1