Question
Assume you purchased a bond with the following particulars: $1000 bond, 8% coupon, semi-annual interest payments, 5 year bond. One year after you purchased the
Assume you purchased a bond with the following particulars: $1000 bond, 8% coupon, semi-annual interest payments, 5 year bond. One year after you purchased the bond, rates on comparable debt have declined to 7%. If you need to sell your bond, what is the price you should be able to receive? (current bond value)
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
