AT&T sold $2 Billion in bonds in anticipation of the acquisition of DirectTV. The nominal yearly interest rate is 6%, compound semiannually. Dr. Leitch buys a $5,000 face vale bond for $4,000 today and the bond is held to maturity in 30 years, what is the EFFECTIVE nominal yearly interest on the bond?

Q: If company A wants to raise 20-24million through bonds, and company B wants to invest in company A.…

A: Coupon payment = $100 Semi-annual Time Period = 30 Years Yield = 16%

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A:

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A: Step 1: Step 2: Step 3: Step 4:

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