Digi - Flow Inc. issued a bond with a coupon rate of 9 % , payable quarterly.

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Question:

Digi

-

Flow Inc. issued a bond with a coupon rate of

9 %,

payable quarterly. The bond matures in

15

years. It has a face value of $

1, 000

and a yield to maturity of

7 % .

What is the price of the bond?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Posted Date: Mar 19, 2024 07:06 AM

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Digi - Flow Inc. issued a bond with a coupon rate of 9 % , payable quarterly.

Question:

Expert Answer:

To calculate the price of the bond we can use the formula for the present value of a bond which is t... View the full answer

Corporate Finance The Core

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