Garvin Ltd's bonds have a par value of $1000.The bonds pay semi-annual interest of $40 and mature in five years.
a.How much would you pay for Garvin bonds if your required rate of return is 10%?
b.How much would you pay if your required rate of return is 8%?

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The Answer of Garvin Ltd's bonds have a par value of $1000.The bonds pay semi-annual interest of $40 and mature in five years.
a.How much would you pay for Garvin bonds if your required rate of return is 10%?
b.How much would you pay if your required rate of return is 8%?

Garvin Ltd's Bonds Have a Par Value of $1000