Question
In: Finance
Assume that three years after the Venture Healthcare bonds (ten-year maturity, a 16 percent coupon rate...
Assume that three years after the Venture Healthcare bonds (ten-year maturity, a 16 percent coupon rate with annual payments, and a $1,000 par value) were issued, the required interest rate fell to 7%. What would be the bonds value? Hint: Watch the Homework Hint video to figure out how to calculate this using Excel. Choice: $750.98 Choice: $1,000.00 Choice: $1,298.56 Choice: $1,485.04
Solutions
Expert Solution
Coupon payment = Coupon rate * face value
Coupon payment = 16% of 1000 = 160
Periods = 10 - 3 = 7
jeff jeffy answered 1 year agoRelated Solutions
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$
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