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please answer MCQ: Legacy Inc. recently issued bonds that mature in 10 years. They have a par value of $1,000 and annual coupon of 6%.
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MCQ: Legacy Inc. recently issued bonds that mature in 10 years. They have a par value of $1,000 and annual coupon of 6%. The current market interest rate is 8.5%. Assume that the bonds can be recalled at end of year 5 at $1,250. What will be the price of bonds? Select one: a. 582.73 b. 1067.75 C. 835.97 d. 833.82 e. 1130.95 Step by Step Solution
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The Handbook Of Mortgage Backed Securities
Authors: Frank Fabozzi
6th Edition
0071460748, 978-0071460743
