Homework Answers
1- company will retires the bonds when market rate of interest equals to coupon rate or stated rate of interest, because when both the rates would be equal market price would be same as par value so in this situation company will retire the bonds at par value.
2- When coupon rate is less than the market rate in this situation bonds would be traded at discounted value so in this situation it is better to buy the bonds in open market.
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4 points Save Answer Public-Private Inc. issued $200 million of 30 year bonds and is contractually...
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