Question
You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 31 years. The annual coupon rate
You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 31 years. The annual coupon rate is 19.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 8.0%, what is the value of the bonds to you?
Question options:
$503.32
$2,420.99
$423.69
$2,248.48
$2,343.36
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Handbook Of Financial Cryptography And Security
Authors: Burton Rosenberg, Douglas R. Stinson
1st Edition
1420059815, 978-1420059816
