Due to a Number of Lawsuits Related to Toxic Wastes,a

question 93

Essay

Due to a number of lawsuits related to toxic wastes,a major chemical company has recently experienced a market revaluation.The firm has bonds outstanding that were issued 8 years ago at their par value of $1,000.These bonds have 12 years to maturity and a coupon rate of 6 percent,with interest paid semiannually.The required return on these bonds has increased to 14 percent.What is the current value of one of these bonds?

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Definitions:

Intensive Collaboration

A deeply cooperative effort involving close and sustained interaction among participants to achieve a common goal.

External Parties

Individuals or organizations outside of an organization who can be affected by its activities or who can impact the organization's performance.

Open Innovation

A business model that encourages companies to both use external ideas and inventions in their own business practices and allow their unused internal ideas to be used by other organizations.

External Sources

Information, resources, or support obtained from outside an organization or individual's immediate environment.