Question
A 10-year annual payment corporate bond has a market price of $1,070. It pays annual interest of $100 and its required rate of return is
A 10-year annual payment corporate bond has a market price of $1,070. It pays annual interest of $100 and its required rate of return is 9 percent. By how much is the bond mispriced?
USE TIME VALUE TABLES WITH 3 DECIMAL PLACES
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Business Math
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
10th edition
133011208, 978-0321924308, 321924304, 978-0133011203
