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Vanilla Ice Co. bonds pay an annual coupon rate of 10% and have 5 years to maturity.

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7) Vanilla Ice Co. bonds pay an annual coupon rate of 10% and have 5 years to maturity. If investors' required rate of return is now 8% on these bonds?;a. Will the bonds be selling at a premium or a discount with respect to their $1000 face value? Why?;b. What is the price of the bonds?

 

Paper#25760 | Written in 18-Jul-2015

Price : $17
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