Question
10 years ago, Hewlitt-Packard Company issued 20-year bonds of $1,000 par value with a 9% coupon rate. The issue pays interest semi-annually. Bonds of similar
10 years ago, Hewlitt-Packard Company issued 20-year bonds of $1,000 par value with a 9% coupon rate. The issue pays interest semi-annually. Bonds of similar risk are currently selling to yield a 6% rate of return. What is the value today of these Hewlitt-Packard Company bonds?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
