Question2 (iii) Ecobank plans to issue a 2-year bond with a face value of ¢500,000,000 bearing 20% coupon rate. The market interest rate is 25%. The coupons are paid every six months. You are to calculate the price of this bond.

Question2 (iii) Ecobank plans to issue a 2-year bond with a face value of ¢500,000,000 bearing 20% coupon rate. The market interest rate is 25%. The coupons are paid every six months. You are to calculate the price of this bond.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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Question2

(iii) Ecobank plans to issue a 2-year bond with a face value of ¢500,000,000 bearing
20% coupon rate. The market interest rate is 25%. The coupons are paid every six
months. You are to calculate the price of this bond.

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