Question
On 14 March 2013 a company issued a bond with a face value of $100,000 that matures exactly 25 years later. The coupon rate is
On 14 March 2013 a company issued a bond with a face value of $100,000 that matures exactly 25 years later. The coupon rate is 6% p.a. compounded half-yearly. What is the bond's value on 14 September 2018 assuming the market yield is 5% p.a. compounded half-yearly.
| a. | $100,000.00 | |
| b. | $112,365.17 | |
| c. | $112,174.30 | |
| d. | $117,017.04 | |
| e. | $112,551.39 |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
