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# Financial Management 54) Assume that WhirledCom has an issue of 15-year \$1,000 par value bonds that pay 6% interest, semi-annually.

Financial Management
54) Assume that WhirledCom has an issue of 15-year \$1,000 par value bonds that pay 6% interest, semi-annually. Further assume that to¬day's required rate of return on these bonds is 9%. How much would these bonds sell for today? Round off to the nearest \$1.
a. \$1,321
b. \$1,066
c. \$756
d. \$864
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Dear Student Please find... View the full answer

N
FV
Coupon
Yield
PVIF
PVIFA
PV of bond 15
1000
6%
9%
0.2670
16.2889
756.00 Answer is c. \$756 30
3.0%
4.5%
Formula
Formula 1/(1+r)n
(1 - [1/(1 + r)t])/r 54) Assume that WhirledCom has an issue of...

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