15 years ago, Company X issued some 20 year 5% annual coupon bonds that were priced with...
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Question:
15 years ago, Company X issued some 20 year 5% annual coupon bonds that were priced with a yield to maturity of 8% p.a. and had a face value of $1000. What did these bonds sell for when they were issued?
b) Now that 15 years have passed and the market's yield to maturity on these bonds has climbed to 10%p.a.. What are they selling for now?
c) What is currently the duration on the bond? (At the yield to maturity of 10% p.a.)
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
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