Question
(Bond valuation ) Bellingham bonds have an annual coupon rate of 12% and a par value of $ 1000 and will mature in 5 years.
(Bond valuation) Bellingham bonds have an annual coupon rate of 12% and a par value of $ 1000 and will mature in 5 years. If you require a return of 16%, i) what price would you be willing to pay for thebond? ii) What happens if you pay more for thebond? iii) What happens if you pay less for thebond?
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
