Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 19QAP
Summary Introduction

Introduction: Price of bond is the total of present value of interest payments and present value of principal repayment.

To compute: Percentage change in price of bonds and interest rate risk of lower coupon bonds

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3 years ago, you invested $9,200. In 3 years, you expect to have $14,167. If you expect to earn the same annual return after 3 years from today as the annual return implied from the past and expected values given in the problem, then in how many years from today do you expect to have $28,798? Input instructions: Round your answer to at least 2 decimal places. 1.62 years
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Chapter 8 Solutions

Corporate Finance

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