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Unformatted text preview: the corporation does not protect the firm’s managers in the same way, i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions. A 20-year, $1,000 par value bond has a 9% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price after 6 years? a. $933.09 b. $935.22 * c. $961.82 d. $965.84 e. $978.40 Yest Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The going interest rate is 6%, based on semiannual compounding. What is the bond’s price? a. $1,008.65 b. $1,024.67 c. $1,051.34 d. $1,098.00 * e. $1,105.78 i...
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This note was uploaded on 06/28/2010 for the course FINANCE FIN3410 taught by Professor On9 during the Spring '10 term at New England Conservatory.
- Spring '10