Question
Hydraulics Ltd has an outstanding bond of coupon rate 14% The bond was issued 5 years ago with a tenure of 8 years Interest payments
Hydraulics Ltd has an outstanding bond of coupon rate 14% The bond was issued 5 years ago with a tenure of 8 years Interest payments are semi annual Face value is Rs.100 It is currently trading at Rs.108 If similar risky bonds yield a return of 12% would you suggest buying this bond?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
