Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 125 Face Value: 1.500 Currently the prevailing risk free rate is 0.01 and the market places a risk premium on XYZ.inc bonds of 0.08 Compute the present value of an XYZ.inc bond? Record your unitless answer to the nearest cent. Your Answer:

Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 125 Face Value: 1.500 Currently the prevailing risk free rate is 0.01 and the market places a risk premium on XYZ.inc bonds of 0.08 Compute the present value of an XYZ.inc bond? Record your unitless answer to the nearest cent. Your Answer:

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 10P

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