Question
Wald Corporation has outstanding bonds with a 6-year maturity, $1,000 par value, and 7% coupon paid semiannually, and those bonds sell at their par value.
Wald Corporation has outstanding bonds with a 6-year maturity, $1,000 par value, and 7% coupon paid semiannually, and those bonds sell at their par value. Wald has another bond with the same risk, maturity, and par value, but this second bond pays a 8% semi-annual coupon. What is the price of this bond?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
