15. Apollos Alpha bond was issued 10 years ago for 30 years with a face value of...

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15. Apollo’s Alpha bond was issued 10 years ago for 30 years with a face value of

$1,000. Interest rates were very high at the time, and the bond’s coupon rate is 20%. The interest rate is now 10%.

a. At what price should an Alpha bond sell?

b. At what price would it sell without the call feature?

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Practical Financial Management

ISBN: 9780324422634

5th Edition

Authors: William R. Lasher

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Question Posted: Oct 17, 2024 08:03 AM

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15. Apollos Alpha bond was issued 10 years ago for 30 years with a face value of...

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Practical Financial Management

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