Question: Two separate questions. Please help. Thank you! Question 10 Assume a $1,000 face value bond has a coupon rate of 8.3 percent paid semiannually and


Two separate questions. Please help. Thank you!
Question 10 Assume a $1,000 face value bond has a coupon rate of 8.3 percent paid semiannually and has an eight-year life. (a) If investors are willing to accept a 10.0 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.) Present value $ Question 11 The Garcia Company's bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 17.9 percent. Assume interest payments are made semiannually. (a) Determine the present value of the bond's cash flows if the required rate of return is 17.9 percent. (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.) Present value $ Attempts: 0 of 2 used
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
