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    test25's Avatar
    test25 Posts: 4, Reputation: 1
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    #1

    Feb 16, 2008, 12:50 AM
    Bond interest rate
    Assume a corporation issues 5-year bonds with a stated rate of 8%, when their market rate of interest is 9%. A year after the bonds are issued the company introduces a new product which is a failure and the company dramatically loses market share. What result will this have on the company's market risk? If the company retires the bonds at this time will they have a gain or loss? Why? How is this gain or loss reported on the financial statements?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 17, 2008, 01:53 AM
    Please see sticky at top of page. Can you please make an attempt to answer this on your own first, and someone can check it, or give you some hints where you're stuck. But we're not here just to answer homework for you.
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