Question
Ultra Air's bonds have a 12-year maturity, a 11% coupon, paid semiannually, and a par value of $1,000. a. What is the bond's value (in
Ultra Air's bonds have a 12-year maturity, a 11% coupon, paid semiannually, and a par value of $1,000.
a. What is the bond's value (in $) if the required return (YTM) is 4%?
b. What is the bond's value (in $) if the required return (YTM) is 5%?
c. What is the bond's value (in $) if the required return (YTM) is 3%?
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Public Finance
Authors: Richard W. Tresch
3rd Edition
012415834X, 9780124158344
