The bond described in item 4 above has a 15-year maturity date. What is the yield rate
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Question:
The bond described in item 4 above has a 15-year maturity date. What is the yield rate to the investor who paid $80,000 for this bond? Is the $784 discount amortization cited in item 5 indeed the correct first-year amount? (Assume that the $5,000 annual interest payment is made in a lump sum at year-end.)
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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