Question
The current firm value is $26.9 million. The firm value will be either $37.9 million or $15.2 million one year later. The firm has outstanding
The current firm value is $26.9 million. The firm value will be either $37.9 million or $15.2 million one year later. The firm has outstanding zero coupon bonds due in one year with a face value of $21.1 million. The one year risk free interest rate is 4.0. What is the yield on the firm's bond?
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
