Question about Casio CFX 9850GB Plus Calculator
You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and
mature in 37 years. The annual coupon rate is 10.0% and the coupon payments are annual. If
you believe that the appropriate discount rate for the bonds is 13.0%, what is the value of the
bonds to you? (Hint: Bond value - annual pmts)
Posted on Jan 23, 2011
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