Question
You buy an 8 percent, 30-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are
You buy an 8 percent, 30-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 10 percent.
What is your one best guess as to the value of the bond?
Value of the bond
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
3rd edition
978-1-119-3916, 1119392132, 1119392136, 9781119391609, 1119391601, 978-1119392132
