The government of Mont-Ecar-Low issued a $1,000 par value bond with a coupon rate of $150 per year, but this bond would not mature for 1,000,000,000,000 years. If investor’s required rate of return on this bond is 15 percent, can you calculate the expected market price of this bond and if yes, what is the expected market price?
The government of Mont-Ecar-Low issued a $1,000 par value bond with a coupon rate of $150 per year, but this bond would not mature for…
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