A company issues a $1,000 perpetual bond. The current rate is 6%. Next period, the rate will
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A company issues a $1,000 perpetual bond. The current rate is 6%. Next period, the rate will change to either 4% or 10%, with equal probability. The bond is callable at the end of the first year only, for a price of $1,117.90. What is the coupon amount, if the bond sells at par?
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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