The bond issue has a fixed rate coupon 6.0% per annum and the current bond yield is
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Question:
- The bond issue has a fixed rate coupon 6.0% per annum and the current bond yield is 7.5% per annum. Calculate the bond price in (b) by choosing an arbitrary bond yield (chosen bond yield) in your assessment is reflective of the discovery which is considered a positive development for bond investors. The chosen bond yield is to be made with reference to the current bond yield.
- Give your reason for the bond yield you have chosen. Assume face amount of the bond is SGD1,000.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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