Question
Polycorp is about to issue debentures. The following information is available. 1.The coupon rate is 8% pa (or .08). Coupons are paid annually 2.The yield
Polycorp is about to issue debentures. The following information is available.
1.The coupon rate is 8% pa (or .08). Coupons are paid annually
2.The yield to maturity (YTM) is 0.08 pa
3.The face value is $100
4.The term is 4 years
How much can the debentures be issued for? Your answer should be accurate to the nearest cent.Notethat the YTM is expressed as a decimal, so .06 is 6% pa.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
