Question
A development company has issued a 5-year corporate bond for $100,000 to raise money for a new project. The bond has annual dividends of $15,000
A development company has issued a 5-year corporate bond for $100,000 to raise money for a new project. The bond has annual dividends of $15,000 per year. And as usual, the bond holder will be paid the face value of the bond at maturity. The bond currently sells for a 10% discount
a) What is the ROR for the bond? b) If a potential investor has a MARR of 20% will this be a good bond to buy at the 10% discount?
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
2nd Edition
0073530670, 9780073530673
