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Author Question: GAT, Inc. has issued a 1,000 par 4 annual coupon bond that is to mature in 18 years. If your ... (Read 14 times)

Anajune7

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on: Jul 10, 2018
GAT, Inc. has issued a 1,000 par 4 annual coupon bond that is to mature in 18 years. If your required rate of
  return is 6.5, what price would you be willing to pay for the bond?
 
  What will be an ideal response?

Question 2

A project's net present value profile shows how sensitive the project is to the choice of a discount
  rate.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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briseldagonzales

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Reply #1 on: Jul 10, 2018
Answer to Question 1

739.19 from Excel PV function with Rate = .065, Nper = 18, Pmt = 40, Fv = 1000, and Type = 0

Answer to Question 2

TRUE


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Anajune7

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Reply #2 on: Jul 10, 2018
Thank you


briseldagonzales

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Reply #3 on: Jul 10, 2018
No problemo


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