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A 7-year bond is being issued today with the following terms: Face value: $1,200,000 Annual coupon rate: 10% Market rate: 9% This is a conventional
A 7-year bond is being issued today with the following terms:
Face value: $1,200,000 Annual coupon rate: 10% Market rate: 9% This is a conventional bond which pays a semi-annual interest annuity.
How much money will the company issuing this bond receive? (That is, what is the price of this bond?)
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
