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show the calculations! A 5% coupon rate, payable semiannually, and a par of $1,000. Bonds (long term debt) mature 10 years from today The yield
show the calculations!
A 5% coupon rate, payable semiannually, and a par of $1,000. Bonds (long term debt) mature 10 years from today The yield to maturity is 10%, so the bonds now sell $1000, the par value. Calculate the current market value of the firm's debt. (Hint: Use the price of the bond 23500 to get the market value of the firm's long term debt.) $16,034,273.86 $15,930,182.51 $17,310,634 $16,178,451.42 QUESTION 5 When the interest rate rises, companies will call back the bonds. When the interest rate falls, companies will not call back the bonds TrueStep by Step Solution
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