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-   -   The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000. (https://www.askmehelpdesk.com/showthread.php?t=456863)

  • Mar 10, 2010, 11:03 PM
    DaElle77
    The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000.
    They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?
  • Mar 11, 2010, 03:02 AM
    morgaine300

    Here's a couple of threads where I've gone over the basics of this. Give them a read and then give it a shot.

    https://www.askmehelpdesk.com/financ...ds-200150.html
    https://www.askmehelpdesk.com/financ...ce-199941.html

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