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
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...
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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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