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eBoole Problem 13-09 A bond has the following features: Coupon rate of interest (paid annually): 5 percent Principal: $1,000 - Term to maturity! 12 years
eBoole Problem 13-09 A bond has the following features: Coupon rate of interest (paid annually): 5 percent Principal: $1,000 - Term to maturity! 12 years a. What will the holder receive when the bond matures -Select- N this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to b. If the current rate of interest on comparable debt is 9 percent what should be the price answer the question. Round your answer to the nearest dollar $ Would you expect the firm to call this bond? Why? Select since the bond is selling for a select c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for twelve years if the funds earn 9 percent annually and there is $90 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar. $
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