Question
A 30 year bond has a face value of $1,000 and a coupon rate of 12% per year with quarterly interest payments. Exactly when there
A 30 year bond has a face value of $1,000 and a coupon rate of 12% per year with quarterly interest payments. Exactly when there are 5 years to maturity (and 20 interest payments left), the market rate for bonds with the same investment grade and maturity are sold at a market rate of 8% per year. How much is the price of one share of the subject bond under current market condition?
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
