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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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Other Subjects-8082951.xls

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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