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Suppose Yvette wants to earn a return of 9.00%, but the bond being considered for purchase offers a coupon rate of 12.00%. Again, assume that
Suppose Yvette wants to earn a return of 9.00%, but the bond being considered for purchase offers a coupon rate of 12.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bonds value to the nearest whole dollar, then its value of is its par value, so that the bond is
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
0470390158, 978-0470390153
