Question
in front of You 3 investment opportunities in bonds as follow: Bond Par value A B C 2000 5000 8000 Coupon rate 9% 11%
in front of You 3 investment opportunities in bonds as follow: Bond Par value A B C 2000 5000 8000 Coupon rate 9% 11% 6% Years to maturity 8 12 15 Market rate 15% 8% 6% Market price 1350 6500 8100 Answer the next questions showing the steps of solving (writing only the answers are not acceptable): 1- Find the intrinsic value for the three bonds? 2- Which bond is best investment from your own opinion and why? 3- After 5 years from now assuming that the market rate remain as is, and the market price remain as is too, recalculate the intrinsic value for the three bonds?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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