Question
31) Company Chianti just issued $18 billion worth of bonds. These are 8-year bonds carrying a coupon rate of interest of 4.5%. Interest is payable
31) Company Chianti just issued $18 billion worth of bonds. These are 8-year bonds carrying a coupon rate of interest of 4.5%. Interest is payable every 6 months.
a) What is the amount of interest to be paid (in dollars) on one of these bonds every 6 months?
b) The current price of these bonds is $1,025.00. What yield-to-maturity is the market requiring on these bonds?
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
