Straight Lane Transport, a trucking and logistics company, has two bond issues outstanding that both sell for
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Straight Lane Transport, a trucking and logistics company, has two bond issues outstanding that both sell for R1 140 each. The first issue has a coupon rate of 7,20% and 15 years to maturity. The second issue has an identical yield to maturity as the first bond, but only 10 years until maturity. Both issues pay interest annually.
What is the annual interest payment on the second issue?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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