Question
Consider a $10,000 face-value, semi-annual corporate bond with a 6% annual coupon rate. What is the fair market value of the bond if comparable bonds
Consider a $10,000 face-value, semi-annual corporate bond with a 6% annual coupon rate. What is the fair market value of the bond if comparable bonds have a yield to maturity of 8%? The tenure of the bond is 5 years What happens to the value of this bond if the market interest rate falls from 8% to 7%?
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Contemporary Topics In Finance
Authors: Iris Claus, Leo Krippner
1st Edition
1119565162, 978-1119565161
