题目
题目

MGT232H5 F LEC0101 Quiz 1

单项选择题

A company has 50,000 bonds outstanding with a face value of $1,000 each and an annual coupon of 7.00%, paid annually. The bonds mature in 10 years. If they were issued today at par, the coupon rate would be 8.00%. What is the market value of the company's bonds?

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思路分析
First, restate the problem to ensure understanding: there are 50,000 bonds outstanding, each with face value $1,000. Annual coupon is 7% of face value, maturing in 10 years. If issued today at par, the coupon rate would be 8%, meaning the going market yield (discount rate) for pricing these bonds is 8%. We need the market value of all bonds today. Key per-bond cash f......Login to view full explanation

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