Walmart has $ 1 , 0 0 0 par value bonds outstanding that matures in 2 0

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Question:

Walmart has $

1, 000

par value bonds outstanding that matures in

20

years and has a

8 %

coupon rate. Interest is paid twice per year. If investors require a rate of return of

6.2 %

on these bonds, what is the value of a bond?

Related Book For answer-question

Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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Posted Date: Apr 01, 2024 02:19 AM

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Walmart has $ 1 , 0 0 0 par value bonds outstanding that matures in 2 0

Question:

Expert Answer:

You can calculate the value of a bond using the following formula Bond Price Present Value of Coupon ... View the full answer

Intermediate Accounting Volume 1

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