What will be the market price of the bonds
Question:
Two years ago bonds were issued with 10 years until maturity, selling at par, and a 7% coupon. If interest rates for that grade of bond are currently 8.25%, what will be the market price of these bonds?
Now Priced at $20 (50% Discount)
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If interest rates for that grade of bond are currently 8.25%, what will be the market price of these bonds?
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