Assume a company needs $6,000,000 to pay for a new investment. The company plans to sell 25-year zero-coupon bonds to raise the capital. If the bonds have a par value of $1,000 and the required return on these bonds is 4.75%, what price will these bonds sell for when issued?
Assume a company needs $6,000,000 to pay for a new investment. The company plans to sell 25-year zero-coupon bonds to raise the capital. If the bonds have a par value of $1,000 and the required return on these bonds is 4.75%, what price will these bonds sell for when issued?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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11. I need immediate help with a finance homework question. (rounded to 2 decimal places)
Assume a company needs $6,000,000 to pay for a new investment. The company plans to sell 25-year zero-coupon bonds to raise the capital. If the bonds have a par value of $1,000 and the required return on these bonds is 4.75%, what price will these bonds sell for when issued?
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