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A $100 bond with 6% annual coupons that can be called on any coupon date10 years to 20 years from now, what price should an
A $100 bond with 6% annual coupons that can be called on any coupon date10 years to 20 years from now, what price should an investor pay to get a minimum yield rate of 8% effective? If this price is paid, what is the maximum yield rate the investor can earn?
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ANSWER Step 1 The price of a bond refers to the amount which an investor should pay for an existing ...
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
