Question
1. Paccione Corporation has a bond issue outstanding with 12 years to maturity, a coupon rate of 6.5 percent, and a $1,000 par value. The
1. Paccione Corporation has a bond issue outstanding with 12 years to maturity, a coupon rate of 6.5 percent, and a $1,000 par value. The bonds pay coupons annually. Bonds with similar risk and maturity are currently yielding 6.5 percent.
What is the current price of a bond?
2. Paccione Corporation has a bond issue outstanding with 10 years to maturity, a coupon rate of 6.5 percent, and a $1,000 par value. The bonds pay coupons annually. Bonds with similar risk and maturity are currently yielding 11 percent.
What is the current price of a bond?
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
