Question
Your firm has 7,500 bonds outstanding currently priced at $1,104.36, paying a $40 annual coupon and sporting a 1.35% YTM. If the coupon is paid
Your firm has 7,500 bonds outstanding currently priced at $1,104.36, paying a $40 annual coupon and sporting a 1.35% YTM. If the coupon is paid out semi-annually, how much cash will your firm need on hand to cover the next coupon payment?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
