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Question) A company has 4,000 bonds outstanding. Each bond has a face value of $1,000.The bonds have ayield to maturity of 5.6%p.a.,and a coupon rate
Question) A company has 4,000 bonds outstanding. Each bond has a face value of $1,000.The bonds have ayield to maturity of 5.6%p.a.,and a coupon rate of 5%p.a.Coupons are paid annually and the bonds mature in eleven years' time.
What is total market value of the firm's debt?
a.$1,610,701.03
b.$1,610,151.87
c.$3,806,781.78
d.$4,000,000
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