Question
In Jan 1, 2009, Central City issued a 5 year serial bond. A total of $8,000 face values of bonds were issued with coupon and
In Jan 1, 2009, Central City issued a 5 year serial bond. A total of $8,000 face values of bonds were issued with coupon and maturity rate as follows:
| Dec. 31, 2010 | 2.5% | 1000 |
| Dec. 31, 2011 | 3% | 2000 |
| Dec. 31, 2012 | 4% | 2500 |
| Dec. 31, 2013 | 5% | 2500 |
Central City received 8,500 from the bond issue.
Find the NIC for the bond issue?
Find the TIC for the bond issue?
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
