Question
You acquired a bond with an par value of $ 1,000, a maturity of 14 years and an annual yield interest rate required in the
You acquired a bond with an par value of $ 1,000, a maturity of 14 years and an annual yield interest rate required in the market for a bond comparable in risk is 10%. Answer or calculate the following 1. 1 required yield Sample procedure Determine the value of the bond or the price paid given the rate. The bond is selling at par value with a premium or a discount. Explain 3. 2. The bond is selling in the primary or secondary market. Explain. 4. Mention two ratios per which a company or government emieo sells bonds 5. Would you buy the bond? Explain You must submit your answers in a Word document to be classified
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