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A 1000$ face value bond issued by the Dysane Company currently pays total annual interest of 90$ per year and has eight-year life. What is
A 1000$ face value bond issued by the Dysane Company currently pays total annual interest of 90$ per year and has eight-year life.
- What is the present value of this bond if investors are currently willing to accept a 10 percent annual rate of return on bonds of similar quality if the bond is a Eurobond? (2 points)
- How would your answer change if the bond is a U.S bond? (2 points)
- Suppose the original bond can be purchased for 900$. What is the bonds yield to maturity? (2 points)
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