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Volkswagen Group has an outstanding bond with a par value of $1,000 and a coupon rate of 13%. The bond pays annual coupon payments and
Volkswagen Group has an outstanding bond with a par value of $1,000 and a coupon rate of 13%. The bond pays annual coupon payments and it has 7 years left to maturity. If required return is 12% indicate if the bond is selling at a premium or a discount and explain why.
- Refer to the Volksvagen bond above. Indicate the yearly payment for every year from year 1 to year 7 on a timeline.
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