Question
A firm issues an 8% 30-year bond with semiannual coupon payments and is today trading at par. Par value is $1,000. The semi-annual interest payment
A firm issues an 8% 30-year bond with semiannual coupon payments and is today trading at par. Par value is $1,000. The semi-annual interest payment and the intrinsic value of the bond today are:
A. $80 and $1,000
B. $80 and $1,080
C. $40 and $1,000
D. $40 and $1,080
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
