Question
ABC Corporation just issued 10-year, $1,000 par value bonds, with a 9% coupon with interest paid annually. The current required rate of return (i.e., YTM)
ABC Corporation just issued 10-year, $1,000 par value bonds, with a 9% coupon with interest paid annually. The current required rate of return (i.e., YTM) is 7.5%. The current price of the bonds is approximately:
a. $909.35
b. $1090.00
c. $1102.96
d. $1239.89
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
