The Garcia Company s bonds have a face value of $ 1 , 0 0 0 ,
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Question:
The Garcia Companys bonds have a face value of $ will mature in years, and carry a coupon rate of percent. Assume interest payments are made semiannually.
a Determine the present value of the bonds cash flows if the required rate of return is percent.
b How would your answer change if the required rate of return is percent?
Expert Answer:
Answer rating: 100% (QA)
a Given Face value of bond 1000 Maturity 10 years Coupon rate 16 pai... View the full answer
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