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Finance: Bonds
Copper Corporation’s Class Semi bonds have a 12 year maturity and an 8.75% coupon paid semiannually and those bonds sell at their par value. The firm’s Class A bonds have the same risk, maturity, nominal interest rate, and par value but these bonds pay interest annually. Neither bond is callable.
a. At what price should the bond sell for? b. Does this bond sell at a discount or premium and why? |
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