Question
Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 4.8% for the first 5 years, 5.8%
Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 4.8% for the first 5 years, 5.8% for the subsequent 3 years, and 6.8% for the final 4 years. If bonds of this risk are yielding 6.2%, estimate the bond's current price. The face value of the bond is $1,000. (Round your answer to the nearest cent.)
| The bond's current price $ |
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
