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A corporation issues $2,000,000 in bonds with a 4% annual coupon rate. The bonds have a 10-year maturity. If the market interest rate is 3%,
A corporation issues $2,000,000 in bonds with a 4% annual coupon rate. The bonds have a 10-year maturity. If the market interest rate is 3%, what will be the bond's selling price?
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To calculate the bonds selling price we can use the present value formula for bonds The present valu...
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Fixed Income Analysis
Authors: Barbara S. Petitt
5th Edition
1119850541, 978-1119850540
