Question
Kookaburra Ltd is planning to expand its business by issuing 15-year zero coupon bonds with a face value of $1,000. If the market interest rate
Kookaburra Ltd is planning to expand its business by issuing 15-year zero coupon bonds with a face value of $1,000. If the market interest rate is 6.8% per annum, compounded semi-annually, what will be the price at which you will be willing to purchase these bonds (round to the nearest dollar)?
a. $512
b. $253
c. $367
d. $412
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Handbook Of The Equity Risk Premium
Authors: Rajnish Mehra
1st Edition
0444508996, 978-0444508997
