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tanhornet221Lv1
28 Sep 2019
(DO NOT USE EXCEL) Ford is about to issue a new corporate bond, face value= $1,000, coupon rate= 8% (annual), term to the maturity= 4 years. You know that a very similar bond issued by GM is already being traded in a bond market with its market price of $1,020, face value= $1,000, coupon rate= 6% (annual) and term to the maturity= 4 years. What would be the appropriate value of Ford's new corporate bond? (Assume that coupons are paid annual for Ford and GM bonds) (DO NOT USE EXCEL)
(DO NOT USE EXCEL) Ford is about to issue a new corporate bond, face value= $1,000, coupon rate= 8% (annual), term to the maturity= 4 years. You know that a very similar bond issued by GM is already being traded in a bond market with its market price of $1,020, face value= $1,000, coupon rate= 6% (annual) and term to the maturity= 4 years. What would be the appropriate value of Ford's new corporate bond? (Assume that coupons are paid annual for Ford and GM bonds) (DO NOT USE EXCEL)
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Reid WolffLv2
28 Sep 2019