Question
Metals Ltd is issuing 5-year bonds with a coupon rate of 7 per cent and semi-annual coupon payments. If the current market rate for similar
Metals Ltd is issuing 5-year bonds with a coupon rate of 7 per cent and semi-annual coupon payments. If the current market rate for similar bonds is 9 per cent, what will be the bond price? If the company wants to raise $1.25 million, how many bonds does the company have to sell?
Answer:
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
