Question
A firm has 10,000 bonds, each with a coupon rate of 4%, payable semiannually, and a par value of $1,000. The bonds mature in 10
A firm has 10,000 bonds, each with a coupon rate of 4%, payable semiannually, and a par value of $1,000. The bonds mature in 10 years. The yield to maturity is 12%, so the bonds now sell below par. What is the TOTAL VALUE of the firm's bonds?
| $5,412,031.51 | ||
| $5,479,821.58 | ||
| $2,531,021.01 | ||
| $7,706,055.89 |
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Better Money
Authors: Lawrence H. White
1st Edition
1009327453, 978-1009327459
