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    Bond value

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    The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year.

    What will be the value of each of theses bonds when the going rate of interest is (1) 5 percent, (2) 8 percent, and (3) 12 percent?

    Assume that there is only one more interest payment to be made on Bond S.

    © BrainMass Inc. brainmass.com October 1, 2020, 5:18 pm ad1c9bdddf
    https://brainmass.com/business/discounted-cash-flows-model/bond-value-33037
    $2.19

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