Question
Carla Vista Corp is issuing a 10-year bond with a coupon rate of 10 percent. The interest rate for similar bonds is currently 6 percent.
Carla Vista Corp is issuing a 10-year bond with a coupon rate of 10 percent. The interest rate for similar bonds is currently 6 percent. Assuming annual payments, what is the value of the bond? (Round answer to 2 decimal places, e.g. 15.25.)
| Value of bond | $ |
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
