Bond par value $1,000 Coupon rate 10% Market interest rate 12% Answer the following: 1. Would you
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Question:
Bond par value $1,000 Coupon rate 10% Market interest rate 12%
Answer the following:
1. Would you buy that bond if you take $200 discount from its face value?
2. What if the coupon payment is paid semiannually, will you change your mind?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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