Question
Determine the price of a $1.8 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 7%,
Determine the price of a $1.8 million bond issue under each of the following independent assumptions:
Maturity 10 years, interest paid annually, stated rate 7%, effective (market) rate 8%.
Maturity 10 years, interest paid semiannually, stated rate 7%, effective (market) rate 8%.
Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 7%.
Maturity 20 years, interest paid semiannually, stated rate 8%, effective (market) rate 7%.
Maturity 20 years, interest paid semiannually, stated rate 8%, effective (market) rate 8%.
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