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Database Software Inc. (DSI) and US Data Inc. (USD) are in the same risk class. Both companies have bonds outstanding that have 8 years to
Database Software Inc. (DSI) and US Data Inc. (USD) are in the same risk class. Both companies have bonds outstanding that have 8 years to maturity and a coupon rate of 8%. The only difference in these bonds is that DSI bond has a quarterly coupon, while USD bond has an annual coupon payment. The market price the DSI bond is $890.75.
What is the value of USD bond? A. $893.30 B. $869.03 C. $869.46 D. $974.82 E. $951.11 F. $874.70 G. $882.80 H. $924.82
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