LTD company issued ten-year bond two years ago with a coupon interest of 13% paid every six-month, similar risk bonds are traded at 15%, you have been approached by the directors of LTD to assist them in evaluating the bond. Respond to the following: Assume the YTM on the bonds similar in risk change to 12,5% , what is the price of this bond? A. R1 025 B. R1125 C. R1325 D. R1425
LTD company issued ten-year bond two years ago with a coupon interest of 13% paid every six-month, similar risk bonds are traded at 15%, you have been approached by the directors of LTD to assist them in evaluating the bond. Respond to the following: Assume the YTM on the bonds similar in risk change to 12,5% , what is the price of this bond? A. R1 025 B. R1125 C. R1325 D. R1425
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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LTD company issued ten-year bond two years ago with a coupon interest of 13% paid every six-month, similar risk bonds are traded at 15%, you have been approached by the directors of LTD to assist them in evaluating the bond. Respond to the following: Assume the YTM on the bonds similar in risk change to 12,5% , what is the price of this bond?
A. R1 025
B. R1125
C. R1325
D. R1425
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