Ford Motor Co. has BB rated bonds outstanding that mature in 18 years, and have a 8.000% coupon rate. Coupon payments are made semi-annually.  If the appropriate required rate of return for this bond is 8.75, what is the value of the bond?

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 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...
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Ford Motor Co. has BB rated bonds outstanding that mature in 18 years, and have a 8.000% coupon rate. Coupon payments are made semi-annually. 

If the appropriate required rate of return for this bond is 8.75, what is the value of the bond?

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