Question
PLEASE DO NOT USE EXCEL 5. A corporation decides to issue 10-year bonds, redeemable at par, with a face amount of $1,000 each. Interest payments
PLEASE DO NOT USE EXCEL
5. A corporation decides to issue 10-year bonds, redeemable at par, with a face amount of $1,000 each. Interest payments are to be made at the rate of 9% convertible semi-annually, and tax on interest is 28%. The desired net yield is 8% convertible semi-annually. a) What is the price of this bond? b) If $942.55 was paid for this bond, calculate the effective annual yield.
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Private Debt Yield Safety And The Emergence Of Alternative Lending
Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
