asedersten
New member
- Joined
- Apr 4, 2008
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I am having difficulties solving this problem. Any suggestions would be greatly appreciated!
Assume a corporation's bond has 16 years remaining until maturity. The coupon interest rate is 8.6% and the bond pays interest semi-annually. Assume bond investors' required rate of return on the bond is 7.5%. What would be the expected market price of this bond? (Assume a $1000 par value.)
Assume a corporation's bond has 16 years remaining until maturity. The coupon interest rate is 8.6% and the bond pays interest semi-annually. Assume bond investors' required rate of return on the bond is 7.5%. What would be the expected market price of this bond? (Assume a $1000 par value.)