Question
21 years ago, Delicious Mills, Inc issued 30-year to maturity bonds that had a 10.79% annual coupon rate, paid semiannually. The bonds had a $1000
21 years ago, Delicious Mills, Inc issued 30-year to maturity bonds that had a 10.79% annual coupon rate, paid semiannually. The bonds had a $1000 face value. Since then, interest rates in general have changed and the yield to maturity on the Delicious Mills bonds in now 12.75%. What is the price today for a Delicious Mills bond?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
