Slaton Corp issued 30 years bonds exactly 10 years ago. The bonds carried a coupon rate...
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Slaton Corp issued 30 years bonds exactly 10 years ago. The bonds carried a coupon rate of 5.8% paid semiannually. In current market conditions, similar maturity, similarly rated bonds on average yield 4.9%. What do these facts suggest the price of the bond should be in the market place? If the actual market price of the bonds is $1,073 are they a good buy? Explain. Slaton Corp issued 30 years bonds exactly 10 years ago. The bonds carried a coupon rate of 5.8% paid semiannually. In current market conditions, similar maturity, similarly rated bonds on average yield 4.9%. What do these facts suggest the price of the bond should be in the market place? If the actual market price of the bonds is $1,073 are they a good buy? Explain.
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Answer rating: 100% (QA)
The price of a bond in the market is influenced by several factors including its coupon rate the prevailing market interest rates and the remaining ti... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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