Question
Question 4 Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The bond can be called in
Question 4
Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6 The market interest rate in year 6 = 4.00% The call price is equal to $1,060 How much would the company save or lose if it calls the bond in year 6 ?
| save $12.98 |
| save $12.60 |
| save $11.72 |
| save $13.10 |
| save $12.22 |
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Financial Modeling Using Excel And VBA
Authors: Chandan Sengupta
1st Edition
0471267686, 978-0471267683
