A company has just raised $6 million by issuing 4000 12-year 11% bond at par. It's predicted that the market yield of this type bonds would be 2.2 per cent lower than coupon rate after 3 years. What will be the expected price of this bond after 3 years? Need the step by step process to get the answer
A company has just raised $6 million by issuing 4000 12-year 11% bond at par. It's predicted that the market yield of this type bonds would be 2.2 per cent lower than coupon rate after 3 years. What will be the expected price of this bond after 3 years?
Need the step by step process to get the answer
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