Consider a 30-year bond that has a face value of $10,000 and a coupon rate of 9%
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Question:
a. What is the maximum price would you be willing to pay for this bond right now?
b. What is the maximum price would you be willing to pay for this bond right after its 14th coupon payment?
c. What is the maximum price would you be willing to pay for this bond right after its 14th coupon payment if YTM at the time is expected to be 4%?
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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