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Both questions please!! 6. Your company is looking to raise money. They have decided to issue $100,000 of five-year, 9% bonds that pay interest semiannually
Both questions please!!
6. Your company is looking to raise money. They have decided to issue $100,000 of five-year, 9% bonds that pay interest semiannually (twice per year). The current market interest rate is 10%. How much money can your company expect to receive from issuing these bonds? 7. You are an investor and have decided to use your capital to purchase some corporate bonds. You have one bond inparticular that you like. The bond is a $100,000, ten-year, 12% bond that pays interest quarterly (4 times per year). The current market interest rate is 8%. What is the maximum amount that you should pay for the bond Step by Step Solution
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