Hewitt Packing Company has an issue of $1,000 par value bonds with a 14% annual coupon rate. The issue pays interest semi-annually and has 10
Hewitt Packing Company has an issue of $1,000 par value bonds with a 14% annual coupon
rate. The issue pays interest semi-annually and has 10 years remaining to its maturity date.
Bonds of similar risk are currently selling at a yield to maturity of 12% percent. What is the
value of these Hewitt Packing Company bonds? If the yield increases to 15 percent, what
would the new bond price be?
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Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
