Question
Freiburg Faucets Incorporated issued 15.00-year bonds 6.00 years ago with a coupon rate of 9.00% APR. The bonds pay semi-annual coupons, have a face value
Freiburg Faucets Incorporated issued 15.00-year bonds 6.00 years ago with a coupon rate of 9.00% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. What is the price of the Freiburg bonds today if investors want a 7.62% APR return for bonds of similar risk and maturity?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
