Dylander bonds are selling on the open market at 89.16. The bonds have stated interest rate of
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Dylander bonds are selling on the open market at 89.16. The bonds have stated interest rate of 8 percent and mature in eight years. Interest payments are made semiannually.
(a) Assume that your required rate of return is 12 percent. Would you buy the bonds? Why or why not?
(b) At what required rate of return would you be indifferent to purchasing the bonds?
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a Since the bonds have a face value of 1000 and they are selling for 8916 an individual bond would h...View the full answer
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