Question
A General Power bond carries a coupon rate of 9.5%, has 9 years until maturity, and sells at a yield to maturity of 8.5%. (Assume
A General Power bond carries a coupon rate of 9.5%, has 9 years until maturity, and sells at a yield to maturity of 8.5%. (Assume annual interest payments.)
At what price does the bond sell and what will happen to the bond price if the yield to maturity falls to 7.5%?
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Mergers, Acquisitions and Other Restructuring Activities
Authors: Donald DePamphilis
8th edition
9780128024539, 128013907, 978-0128013908
