Suppose ford motor co sold an issue of bonds with a 10-year, Ask an Expert

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Suppose Ford Motor Co. sold an issue of bonds with a 10-year maturity, $1,000 par value, and 10% coupon rate.

Two years alter the bonds were issued, the going rate of interest on similar bonds fell to 6%.

At what price would the bonds sell? Instead of an interest rate decrease, suppose two years after issuance, the going interest on similar bonds rose to 12%. At what price would the bonds sell?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92846121

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