if market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of 100,000 will be:
= to 100.000
> 100,000
< 100.000
depends on the maturity date of the bonds
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if market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of 100,000 will be:
= to 100.000
> 100,000
< 100.000
depends on the maturity date of the bonds
Depends on the Market Value of the date of the sale.
The bonds are paying less than the market. So what do you think?
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