PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 33, Problem 16PS
Summary Introduction
To explain: Tunneling and the way the threat of tunneling impede the development of financial markets.
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if $500 is placed in an account that earns a normal 6 % compounded quarterly, what will be worith in 10 years.
a. $907
b. $1,045
c. $980
d. $ 1,020
e. $117.48
what is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in the market place ? the annual bond has 20 years remaining until maturity and pays a 14% coupon. (assume annual interest payments and discounting)
a. 14%
b. 7%
c. 6%
d. 12%
If blurr image please comment i will write values.
please dont Solve with incorrect values otherwise unhelpful.
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