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“The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a… 1 answer below » “The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually. ” What is Bond Price if required return is a)16% , b ) 12% Document Preview: 0.92592592592592582
0.5
0.92592592592592582
80
74.074074074074062
1.08
0.8573388203017831
1
0.8573388203017831
80
68.587105624142652
1.08
0.79383224102016947
1.5
0.79383224102016947
80
63.506579281613554
1.08
0.73502985279645316
2
0.735029852 View complete question » “The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually. ” What is Bond Price if required return is a)16% , b ) 12% Document Preview: 0.92592592592592582
0.5
0.92592592592592582
80
74.074074074074062
1.08
0.8573388203017831
1
0.8573388203017831
80
68.587105624142652
1.08
0.79383224102016947
1.5
0.79383224102016947
80
63.506579281613554
1.08
0.73502985279645316
2
0.73502985279645316
80
58.80238822371625
1.08
0.68058319703375292
2.5
0.68058319703375292
80
54.446655762700232
1.08
0.63016962688310452
3
0.63016962688310452
80
50.413570150648361
1.08
0.58349039526213375
3.5
0.58349039526213375
80
46.679231620970697
1.08
0.54026888450197563
4
0.54026888450197563
80
43.221510760158054
1.08
0.50024896713145883
4.5
0.50024896713145883
80
40.019917370516708
1.08
0.46319348808468408
5
0.46319348808468408
80
37.055479046774728
1.08
0.4288828593376704
5.5
0.4288828593376704
80
34.310628747013631
1.08
0.39711375864599108
6
0.39711375864599108
80
31.769100691679284
1.08
0.36769792467221396
6.5
0.36769792467221396
80
29.415833973777119
1.08
0.34046104136316108
7
0.34046104136316108
80
27.236883309052885
1.08
0.31524170496588988
7.5
0.31524170496588988
80
25.219336397271192
1.08
0.29189046756100911
8
0.29189046756100911
80
23.351237404880727
1.08
0.27026895144537877
8.5
0.27026895144537877
80
21.6215161156303
1.08
0.25024902911609143
9
0.25024902911609143
80
20.019922329287315
1.08
0.23171206399638095
9.5
0.23171206399638095
80
18.536965119710477
1.08
0.21454820740405642
10
0.21454820740405642
80
17.163856592324514
1.08
0.19865574759634852
10
0.21454820740405642
1000
214.54820740405643
1.08
0.18394050703365603
2600
999.99999999999909
0.94339622641509424
0.5
0.94339622641509424
80
75.471698113207538
1.06
0.88999644001423983
1
0.88999644001423983
80
71.199715201139185
1.06
0.83961928303230171
1.5
0.83961928303230171
80
67.169542642584133
1.06
0.79209366323802044
2
0.79209366323802044
80
63.367493059041635
1.06
0.747258172866057
2.5
0.747258172866057
80
59.78065382928456
1.06
0.70496054043967638
3
0.70496054043967638
80
56.39684323517411
1.06
0.6650571136223362… Attachments: YTM.xlsx View less » Oct 01 2015 05:52 PM
