Your firm issues a 15 yr bond, coupon rate 8%, par value $1000, date of issue Jan.

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Your firm issues a 15 yr bond, coupon rate 8%, par value $1000, date of issue Jan. 1, 2011.

a) what is the expected value of the bonds at July 1, 2021 is market rate is 10%?

b) what would their value be on Dec. 31, 2020 is market rate is 6%?

c). find their yield to maturity on Dec. 31, 2019 if their price was $900?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Sep 21, 2023 03:34 AM

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Your firm issues a 15 yr bond, coupon rate 8%, par value $1000, date of issue Jan.

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To calculate the expected value of the bonds and their yield to maturity we need to use the present ... View the full answer

Foundations of Financial Management

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