Question
Rahim Fabrics Inc. issues a bond with a 12% interest which has a par value of $1,000. The current YTM on such bonds in the
Rahim Fabrics Inc. issues a bond with a 12% interest which has a par value of $1,000. The current YTM on such bonds in the market is 14%. Please calculate the prices of the bond considering the maturity (a) 40 yrs., and (b) 30 yrs. (c) Compare the results of a & b and discuss which one may be a better investment choice and why?
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
