Question
Suppose that you purchased a Ba rated $5,000 annual coupon bond with an 18.3% coupon rate and a 18-year maturity. The current rate on 18-year
Suppose that you purchased a Ba rated $5,000 annual coupon bond with an 18.3% coupon rate and a 18-year maturity. The current rate on 18-year US treasuries is 3%. If you purchased it at a 12.958% premium to par value, how much did you pay?
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Fundamentals Of Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
2nd Edition
0324406363, 978-0324406368
