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Delta corporation has a bond issue outstanding with an annual coupon rate of 7% and 20 years remaining until maturity. The par value of the
Delta corporation has a bond issue outstanding with an annual coupon rate of 7% and 20 years remaining until maturity. The par value of the bond is $1,000. What is the current value of the bond if present market conditions justify a 14% required rate of return?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
