Bond Assignment | Professional Writing
May 21st, 2020
(Bond prices and maturity) AT&T, Inc. has two $1,000 face value bond issues outstanding with an 8 5/8% coupon. One issue matures in 16 years and the other mature in 35 years.
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Bond Assignment | Professional Writing
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a. Calculate each bond’s price if investors require a rate of return of 8 5/8%. b. Calculate each bond’s price if investors require a rate of return of 5%. c. Calculate each bond’s price if investors require a rate of return of 12%. d. Comment on the pattern of price changes you observe.
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