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Valuing Bonds, Microhard has issued a bond with the following characteristics PAR: $1,000 Time to Maturity: 30 years Coupon rate:

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Valuing Bonds, Microhard has issued a bond with the following characteristics

PAR: $1,000

Time to Maturity: 30 years

Coupon rate: 7 percent

Semiannual payments

Calculate the price of this bond if the YTM is:

a. 7 percent

b. 9 percent

c. 5 percent


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A Settlement 1 1 12 Think of Settlement as the beginning of the duration of the bond Maturity 1 1 42 Think of Maturity as the end of the duration of t…View the full answer


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Corporate Finance

Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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Question Posted: May 23, 2013 04:05:29
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