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Question 9 Suppose Ford Motor Company sold an issue of bonds with 10 -year maturity, $1000 par value, and 10% coupon rate paid semi-annually. (a)
Question 9 Suppose Ford Motor Company sold an issue of bonds with 10 -year maturity, $1000 par value, and 10% coupon rate paid semi-annually. (a) Two years after the bonds were issued, the required return on such bonds fell to 6%. At what price will the bonds sell for? (b) Suppose that two years after the initial offering, the required return rose to 12%. At what price will the bonds sell for
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