(1 point) A company issues a 15-year $9500 bond, redeemable at 105 with bond interest at...

Question

Question

(1 point) A company issues a 15-year $9500 bond, redeemable at 105 with bond interest at ji = 6%. The bond is callable at the

Answer 1

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A B С D E F 1 $9,500.00 2 3 Par value of Bond Coupon rate Required Yield rate 6% 4 11% 5 6. 7 8 9 10 Call/Redemption Price $7

Cell reference -

A B С D E 1 9500 2 3 Par value of Bond Coupon rate Required Yield rate 0.06 4 0.11 Years 5 5 6 7 8 9 10 Call/Redemption Price

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Answer 2

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