Terminator bug company bonds have a 14% coupon rate. Interest is paid semi-annually. - 4430

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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. Inter