An A rated corporate bond from Textron has 6 years until maturity, a coupon rate (paid...
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An "A" rated corporate bond from Textron has 6 years until maturity, a coupon rate (paid semiannually) of 6.4%, and par value of $1000. Similar corporate bonds have yields-to-maturity of 3.1%. At that yield, what should be the price of the Textron bond as a percentage of par value? An "A" rated corporate bond from Textron has 6 years until maturity, a coupon rate (paid semiannually) of 6.4%, and par value of $1000. Similar corporate bonds have yields-to-maturity of 3.1%. At that yield, what should be the price of the Textron bond as a percentage of par value?
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To calculate the price of the Textron bond as a percentage of its par value we can use the present v... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date:
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