Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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H&N Company’s bond has 5 years remaining to maturity. Interest is paid annually. The bond has a RM1000 par value, and the coupon interest rate is 9%
a) What is the yield to maturity at a current market price of RM799?
b) Would you pay RM799 for this bond if you thought that the appropriate rate of interest was 12% - that is if kd = 12%? Explain your answer.
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