Question
The International Publishing Group is raising $10 million by issuing 15-year bonds with a coupon rate of 5 percent. Coupon payments will be made annually.
The International Publishing Group is raising $10 million by issuing 15-year
bonds with a coupon rate of 5 percent. Coupon payments will be made annually.
Investors buying the bond currently will earn a yield to maturity of 8.5 percent. At what
price will the bonds sell in the marketplace?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
