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A corporate bond with a face value of $100,000 was issued six years ago and there are four years remaining until maturity. The bond pays
A corporate bond with a face value of $100,000 was issued six years ago and there are four years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today?
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To calculate the value of the bond today we can use the following formula Bond value Coupon payment ...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
