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Hanna Inc. has a proprietary bond-rating model and has determined the required return on the following Amerco bond is 7.5%. Assume the bond is being
Hanna Inc. has a proprietary bond-rating model and has determined the required return on the following Amerco bond is 7.5%. Assume the bond is being evaluated in the current month of 2013 and matures in the current month of the year indicated. Based on this information, calculate the amount the bond is over- or under-priced.
Bond Coupon Maturity Last Price
Amerco 9.125 2021 117.25
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