A firm is planning to issue 50 million debts each bond will, Ask an Expert

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A firm is planning to issue $50 million debts. Each bond will have a par value of $1,000, a coupon of 9% paid annually, and maturity period of 25 years. If the market rate for such bond is 12%, what will be the market price of such bond and how many bonds will the firm have to issue? (Hint: par=1000, N=25, coupon rate=9%, required rate of return(discount rate)=12%)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608062

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