Question
ABC Corporation issued 20 year semi-annual 12% coupon bond with face value $1,000. The current yield to maturity is 8%. What is the current bond
ABC Corporation issued 20 year semi-annual 12% coupon bond with face value $1,000. The current yield to maturity is 8%. What is the current bond price of ABC? Another company, J Bieber Corporation issue a similar bond of semi-annual 12% coupon with 8% yield to maturity, but a longer time to maturity. Would the current bond price of J Bieber be higher or lower than ABC? Why?
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
