a) Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount
Fantastic news! We've Found the answer you've been seeking!
Question:
a) Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7%. What is the current price of this bond? B) If this a callable bond do you expect investors to pay more or less for the bond? Explain your logic.
Posted Date: