How much to pay for simple rate of return on the bond
You have just purchased a 10 year, $1,000 par value bond. The coupon rate on this bond is 8% annually, with interest being paid each 6 months. If you expect to earn a 10% simple rate of return on this bond, how much did you pay for it?
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The coupon rate on this bond is 8% annually, with interest being paid each 6 months. If you expect to earn a 10% simple rate of return on this bond, how much did you pay for it?
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A company desires to replace its current plant equipment with new equipment that costs $10,000,000. One possibility would be for the company to issue $10,000,000 of bonds.
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