Question
Bond Features Face Value = $1,000 Coupon Rate = 5.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6
Bond Features Face Value = $1,000 Coupon Rate = 5.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6 The market interest rate in year 6 = 3.00% The call price is equal to $1,050 How much would the company save or lose if it calls the bond in year 6 ?
Group of answer choices
save $23.61
save $22.64
save $25.32
save $25.07
save $24.34
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
