Terminator bug company bonds have a 14% coupon rate - 3402

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  • Posted on: Fri 23 Mar, 2012
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Request Description

Terminator bug company bonds have a 14% coupon rate. Interest is paid semi-annually. The bonds have a par value of $1000 and will mature 10 years from now. Compute the value of terminator bonds if investors’ required rate of return is 12%, rounded to the nearest dollar.

a. $1115

 b. $1149

c. $1000

d. $894 

Solution Description

Terminator bug company bonds have a 14% coupon rate. Interest is paid sem