Question
Mini-Market has a bond, with;10% coupon rate, $1000 face value and 20 years to maturity.Investors require a 12% return, what is the Bond's value? Group
Mini-Market has a bond, with;10% coupon rate, $1000 face value and 20 years to maturity.Investors require a 12% return, what is the Bond's value?
Group of answer choices
approx $850
approx $805
approx $1000
approx $880
Bond ratings are primarily determined by;
Group of answer choices
compared to risk free rate
time to maturity
depends on the price
default risk
Bond values are determined by;
Group of answer choices
combining the present value of two different cash flows
combining the future value of the two different cash flows
the current market rate
dividing the dividend by price
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
