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Amcor limited has a corporate bond outstanding with 7% coupon semi annual interest 15 years to maturity and face value of $ 1000.Similar bonds currently
Amcor limited has a corporate bond outstanding with 7% coupon semi annual interest 15 years to maturity and face value of $ 1000.Similar bonds currently yield 13%.By prior agreement the company will skip the coupon payment in year 6,7 and 8 (6 payments in total; the payment at time 6 through to 8.5).These payments will be repaid without interests at maturity. What is the corporate bond's value?
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Answer Solution Coupon rate 7 ie 35 semi annually FV of the bond 1000 Yield on the bond 13 ie 65 sem...
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Essentials Of Business Analytics
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
1st Edition
128518727X, 978-1337360135, 978-1285187273
