Question
If the bond market expects a 13 percent yield, and ABC Ltd. pays coupon interest on its $1000 par value bond at eight percent semi-annually,
If the bond market expects a 13 percent yield, and ABC Ltd. pays coupon interest on its $1000 par value bond at eight percent semi-annually, the discount rate that investors should apply in the calculation of ABC Ltd. bond price should be
a.
6.5 percent.
b.
4 percent.
c.
13 percent.
d.
8 percent.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
