Question
1. The Beakman Corp. has $1,000 PAR bond at 5% interest. The bonds will mature in 10 years. Compute the current price of the bond
1. The Beakman Corp. has $1,000 PAR bond at 5% interest. The bonds will mature in 10 years. Compute the current price of the bond if the present yield to maturity is 8%. Is this bond trading at par, discount or premium (15 POINTS)?
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Financial Asset Pricing Theory
Authors: Claus MUNK
1st Edition
0198716451, 978-0198716457
