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In: Finance

(Bond valuation​) Flora​ Co.'s bonds, maturing in 1515 ​years, pay 1515 percent interest on a $...

(Bond

valuation​)

Flora​ Co.'s bonds, maturing in

1515

​years, pay

1515

percent interest on a

$ 1 comma 000$1,000

face value.​ However, interest is paid semiannually. If your required rate of return is

55

​percent, what is the value of the​ bond? How would your answer change if the interest were paid​ annually?

Solutions

Expert Solution

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As nothing was mentioned excel is used.


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