Question
A 10 -year 6%$10,000 par value bond with a semi-annual coupon is offered. This bond is callable in 7 years at a call price of
A 10 -year 6%$10,000 par value bond with a semi-annual coupon is offered. This bond is callable in 7 years at a call price of 10,475.00. What is the highest price an investor would be willing to pay for this bond if their required yield is 13%?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
