Question: shown on paper prefered if possible 2. ( 5 points) The Red Hill Company bond has an annual coupon rate of 5.40%, pays interest semi-annually

shown on paper prefered if possible

2. ( 5 points) The Red Hill Company bond has an annual coupon rate of 5.40%, pays interest semi-annually and has a face value of $1,000. If there are 21 years to maturity and your required rate of return on bonds of this risk level is 6.40%, what is the bonds value to you? (With this problem solve for its present value and show all work with the formula)

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