Question
Your own a Hebb Co. bond with the following characteristics: Face value: $1,000 Coupon rate: 11% Coupons are paid semi-annually Years to Maturity: 12 years
Your own a Hebb Co. bond with the following characteristics:
Face value: $1,000
Coupon rate: 11%
Coupons are paid semi-annually
Years to Maturity: 12 years
Current price: $ 858
Hebb Co. company is willing to double the last 6 coupon payments. If you require a 12% yield with semi-annual compounding, what is the most you would be willing to pay now for this option? Answer to the nearest cent and do NOT include a $ sign.
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Private Equity Value Creation Analysis Volume I
Authors: Michael David Reinard
1st Edition
1736077821, 978-1736077825
