Inca Corp, issues a $1,000 par, 10-year 7% coupon bond. The bond makes SEMIANNUAL coupon payments....
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Inca Corp, issues a $1,000 par, 10-year 7% coupon bond. The bond makes SEMIANNUAL coupon payments. If the required return on the bond is 10%, what is the bond's price? Inca Corp, issues a $1,000 par, 10-year 7% coupon bond. The bond makes SEMIANNUAL coupon payments. If the required return on the bond is 10%, what is the bond's price?
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Answer rating: 100% (QA)
To calculate the price of the bond we need to discount the future cash flows coupon payments and principal payment at the required rate of return Since the bond makes semiannual coupon payments the annual coupon payment ... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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