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A bond of Telink corporation pays $100 in annual interest, with a $1,000 par value. The bonds mature

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A bond of Telink corporation pays $100 in annual interest, with a $1,000 par value. The bonds mature in 25;years. The market's required yield to maturity on a comparable bond is 8 percent.;a. Calculate the value of the bond.;b. How does the value change if the market's required yield to maturity on a comparable risk bond (i);increase to 12 percent or (ii) decreases to 6 percent?;c. Interpret your findings in parts a and b.;Additional Requirements;Min Pages: 1;Level of Detail: Show all work

 

Paper#30626 | Written in 18-Jul-2015

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