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A 10-year annual payment corporate bond has a market price of $1,050. 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 $1,050. It pays annual interest of $100 and its required rate of return is 9 percent. By how much is the bond mispriced?
| Overpriced by $14.18 | |
| Underpriced by $9.32 | |
| $0.00 | |
| Overpriced by $9.32 | |
| Underpriced by $14.18 |
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Entrepreneurial Finance
Authors: M. J. Alhabeeb
1st Edition
1118691512, 978-1118691519
