Suppose a bond with a face value of 1000 a coupon rate of 8, Ask an Expert

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Suppose a bond with a face value of $1000, a coupon rate of 8% paid annually, with a maturity of 10 years. The bond can be called at the 5th year at a call price of $1080 Originally the interest rate was 9% If just the first day after the emission of the bond the interest rate fall to 5%, what will happen?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92414622

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