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Titan Corp issued a 1,000 par value bond paying 8 percent interest with 15 years to...

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Finance

Titan Corp issued a 1,000 par value bond paying 8 percent interestwith 15 years to maturity. Assume the current yield to maturity is10 percent. What is the price (value) of the bond? Hint: use thepresent value annuity for yourncalculation


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4.1 Ratings (561 Votes)
Price of the bond is the present value of the annual coupon payments and present value of the bond repayment at maturity We will use the 10 rate of yield to maturity to calculate    See Answer
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Titan Corp issued a 1,000 par value bond paying 8 percent interestwith 15 years to maturity. Assume the current yield to maturity is10 percent. What is the price (value) of the bond? Hint: use thepresent value annuity for yourncalculation

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