Question
You bought a 11-year, 4% semi-annual coupon bond today and the current market rate of return is 4.8%. The bond is callable in 6 years
You bought a 11-year, 4% semi-annual coupon bond today and the current market rate of return is 4.8%. The bond is callable in 6 years with a $1057 call premium. What price did you pay for your bond?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
