BSW Corporation has a bond issue outstanding with an annual coupon rate of 6.4 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 13.5 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Fair present value S 783.30

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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BSW Corporation has a bond issue outstanding with an annual coupon rate of 6.4 percent paid quarterly and four years remaining until
maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 13.5 percent,
compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
Fair present value
$
783.30
Transcribed Image Text:BSW Corporation has a bond issue outstanding with an annual coupon rate of 6.4 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 13.5 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Fair present value $ 783.30
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