Question
If you buy a bond with face value of 6000. The bond is supposed to give you 10% coupon for next 12 years; which is
If you buy a bond with face value of 6000. The bond is supposed to give you 10% coupon for next 12 years; which is it’s maturity date. Your required rate of return is 15%. What is maximum amount that you would be willing to pay to buy that bond.
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Face value 6000 Coupon 10 Annual coupon 600 Period n12 Required rate of return r15015 Prese...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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