A company issues bond loan, redeemable at maturity, with the following characteristics Par value of a...
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A company issues bond loan, redeemable at maturity, with the following characteristics Par value of a bond: 200 euros Redemption value: 200 euros Coupons paid annually on the anniversary of the issue date Maturity: 4 years Nominal rate: 6%. On the issuance day, the bond offers a yield to maturity of 6%. a) What is the issue price of this bond? One year later, just before the payment of the first coupon, the price of this bond is 210 euros. wwwwww b) What is its yield to maturity? c) What can we conclude? A company issues bond loan, redeemable at maturity, with the following characteristics Par value of a bond: 200 euros Redemption value: 200 euros Coupons paid annually on the anniversary of the issue date Maturity: 4 years Nominal rate: 6%. On the issuance day, the bond offers a yield to maturity of 6%. a) What is the issue price of this bond? One year later, just before the payment of the first coupon, the price of this bond is 210 euros. wwwwww b) What is its yield to maturity? c) What can we conclude?
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Bond Analysis a Issue Price This is a zerocoupon bond because the nominal rate coupon is equal to th... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Posted Date:
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