Question
General Motors issued some zero-coupon bonds which will mature in 7 years. If the investors require a return of 10%, what should the bond sell
General Motors issued some zero-coupon bonds which will mature in 7 years. If the investors require a return of 10%, what should the bond sell for? Assume a face value of $1000.
a. $513
b. $573
c. $300
d. Cannot determine.
e. none of the above.
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
9th edition
1259722619, 978-1260049190, 1260049191, 978-1259722615
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