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If a corporation issues a $1000 bond with an annual coupon payment of 7% for 30 years, what are the annual payments? $70 How much
- If a corporation issues a $1000 bond with an annual coupon payment of 7% for 30 years, what are the annual payments? $70
- How much of the bond will be left to pay off after 10 years?
- Now suppose that over the 10 years since the corporation issued the bond, interest rates fell. If the corporation issues a new 20-year bond, the required coupon rate will have fallen to 4%. How much will the new annual payments be?
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School Finance Elections
Authors: Don E. Lifto, Bradford J. Senden, Daniel A. Domenech
2nd Edition
1607091488, 978-1607091486
