Question
SAC Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 9.5% coupon rate bonds that sell for $988,
SAC Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 9.5% coupon rate bonds that sell for $988, make semi-annual payments, and mature in 20 years. What should the coupon rate be on the new bonds?
11.64%
9.50%
CANNOT DETERMINE WITHOUT FURTHER INFO
10.50%
9.64%
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
