Western Digital has issued a bond with a par value of $1,000 each and a 5.25%...
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Western Digital has issued a bond with a par value of $1,000 each and a 5.25% per year coupon. The bonds mature in 8 years and pay interest annually. What is the current value of the bond if the market interest rate is 6.0%? Western Digital has issued a bond with a par value of $1,000 each and a 5.25% per year coupon. The bonds mature in 8 years and pay interest annually. What is the current value of the bond if the market interest rate is 6.0%?
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Answer rating: 100% (QA)
To calculate the current value of the bond we need to discount the future cash flows by the market i... View the full answer
Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
Posted Date:
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