Question
Question 23 The South African company situated in Cape Town needs capital to kick start a new project which is believed to be very profitable.
Question 23
The South African company situated in Cape Town needs capital to kick start a new project which is believed to be very profitable. The only challenge the company faces is the lack of funding. The directors have then agreed that the firm issue twelve-year bonds, which are currently trading at par. The agreed coupon interest rate is 11% paid two times a year to the bondholders. Find the value of a bond
- A. R900.00
- B. R1000.00
- C. R1100.00
- D. R1150.00
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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9814365041, 978-9814365048
