Question
Rick has two bonds outstanding. Bond A was issued 20 years ago at a coupon rate of 8%. The other, Bond B, was issued 8
Rick has two bonds outstanding. Bond A was issued 20 years ago at a coupon rate of 8%. The other, Bond B, was issued 8 years ago at a coupon rate of 8%. Both bonds were originally issued as 30-year bonds with coupon payments made semi-annually. The current market rate (YTM) is 12%.
- What is the current price of Bond A?
- What is the current price of Bond B?
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Principles Of Sustainable Finance
Authors: Dirk Schoenmaker, Willem Schramade
1st Edition
0198826605, 978-0198826606
