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A corporation issues a special 20 year bond thatbhas no coupons. Rather intrest will be accumulated on the bond at a rate of 11% per
A corporation issues a special 20 year bond thatbhas no coupons. Rather intrest will be accumulated on the bond at a rate of 11% per year (EAR) for the life of thr bond. At the time of maturity, the total value of the bond will be laid off, including all accumulated interest. what is the current price of the bond if the yields is 10%?
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This is a zerocoupon bond situation Since there are no periodic coupon payments the bonds price is the present value of the future face value consider...
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
