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What will be the price of an percent coupon bond

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Reference no: EM132987712

Question - Carla Vista Information Systems management is planning to issue 10-year bonds. The going market yield for such bonds is 8.145 percent. Assume that coupon payments will be made semiannually. Management is trying to decide between issuing an 8 percent coupon bond or a zero coupon bond. Carla Vista needs to raise $1 million.

What will be the price of an 8 percent coupon bond?

How many 8 percent coupon bonds would have to be issued?

Reference no: EM132987712

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