Question
A Capone Global Initiative corporate bond returns 6% of its PV in the first year, 5% in the second year, 4% in the third year
A Capone Global Initiative corporate bond returns 6% of its PV in the first year, 5% in the second year, 4% in the third year and the remainder in the fourth year.
Assume the prevailing risk-adjusted rate for the Capone Global Initiative bond is 5%. If that rate changes to 6%, by what % will the bond price change?
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Financial Management For Decision Making
Authors: Harold Jr. Bierman, Seymour Smidt
1st Edition
1587982129, 9781587982125
