question archive The WeLikeToStudyBonds Company issued a $1,000 par value, 14-year bond that has a 3
The WeLikeToStudyBonds Company issued a $1,000 par value, 14-year bond that has a 3
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The WeLikeToStudyBonds Company issued a $1,000 par value, 14-year bond that has a 3.5% annual coupon. If the market is requiring an 7% rate of return on bonds of this level of risk:
a) (7 pts) what is the current value of the bond?
b) (3 pts) Is the bond selling at a discount or at a premium?
Option 1
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Option 2
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