Question
1. You want to buy a corporate bond for your portfolio. Assume it is the same as every bond we have discussed in class! The
1. You want to buy a corporate bond for your portfolio. Assume it is the same as every bond we have discussed in class! The annual coupon rate is 5%. It has been four years since it was issued. You require a 7.0742% yield to maturity. (6 pt.s) a) What is the par value of the bond b) What is the price the bond would currently be trading at?
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
