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1.Mountaintop Corporation's bonds have a 10-year maturity, a 6.25% semi-annual coupon, and a par value of $1,000. The current market interest rate (rd) is 4.75%
1.Mountaintop Corporation's bonds have a 10-year maturity, a 6.25% semi-annual coupon, and a par value of $1,000. The current market interest rate (rd) is 4.75% annual rate. What is the bond's price? 2.Regarding Mountaintop Corporation's bonds in the previous question, which of the following statements is CORRECT?A. The Bond is selling at a discount B. The Bond only has coupon payments, so it does not pay the par value at the end when the bond matures. C. The Bond is selling at a premium. D. The Bond 's coupon payments are made at the end of each year.
2.Regarding Mountaintop Corporation's bonds in the previous question, which of the following statements is CORRECT?
A. The Bond is selling at a discount
B. The Bond only has coupon payments, so it does not pay the par value at the end when the bond matures.
C. The Bond is selling at a premium.
D. The Bond 's coupon payments are made at the end of each year.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
978-1305637108
