Question: Use the falltmring information to answer questions 810. lChevron would like to issue some 20year bonds to finance development of an oil field. Each $1,000

Use the falltmring information to answer
Use the falltmring information to answer questions 810. lChevron would like to issue some 20year bonds to finance development of an oil field. Each $1,000 (par value) bond will have an 8.5 percent coupon rate and pay annual interest. 8. If investors require a 0% return on these bonds, at what price will the bonds sell when they are issued? 9. If investors require a T96 return on these bonds; at what price will the bonds sell when they are issued? 10. ssume that 10 years after the bonds are issued, the investorrequired rate of return on these bonds has increased to 12%. t what price will the bonds sell at that time? Note. ..ten years have passed, so only 10 interest payments remain. llsol remember that the coupon rate does not change once the bonds are issued

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