question archive If a company issues a bond worth $600000 at 10 % rate with 5 Year bond at 109
If a company issues a bond worth $600000 at 10 % rate with 5 Year bond at 109
Subject:BusinessPrice: Bought3
If a company issues a bond worth $600000 at 10 % rate with 5 Year bond at 109. What will be its maturity value, annual cash interest payment, proceeds a company recieves at the issuance of the bond, total amount of premium, annual premium amortization. And lastly by using value of bond formulae find the value of bond at time zero with par value $ 1000 and required rate of return is 16 %. Please explain step by step in detail.
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