A company has issued a bond with a par value of $1,000 and with coupon rate of

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A company has issued a bond with a par value of $1,000 and with coupon rate of 6% paid semi-annually with maturity of ten years.

A) What is the bond's price after a year if similar risk bonds has coupon rate of 8%?

B) The bond can be called on its 5th year at $1,020. What is the yield to call if the bond's price is $990.

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Apr 17, 2024 04:06 AM

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A company has issued a bond with a par value of $1,000 and with coupon rate of

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A To calculate the bonds price after a year if similar risk bonds have a coupon rate of 8 we need to ... View the full answer

Corporate Finance A Focused Approach

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