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Urgent! Please help as soon as you can :) Removalists of Junk Inc. is issuing a new eleven-year bond at a face value of $1,000.00
Urgent! Please help as soon as you can :)
Removalists of Junk Inc. is issuing a new eleven-year bond at a face value of $1,000.00 with a coupon rate of 9.8%. Coupons are paid quarterly. The risk-free yield to maturity on similar term bonds trading in the market is 4.0% and Removalists of Junk has a credit spread of 16.0%. What should be the market price of Removalists of Junk's bond? a. $549.60 O b. $488.32 O c. $1,508.11 O d. $516.53 e. $688.22Step by Step Solution
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