5 22 Points New Century Computer Issued 450 Million Of Aa Rated 30 Year 1 000 Par Bonds On This Date In 2013 Which 1 (16.8 KiB) Viewed 33 times
5 22 Points New Century Computer Issued 450 Million Of Aa Rated 30 Year 1 000 Par Bonds On This Date In 2013 Which 2 (16.8 KiB) Viewed 33 times
# 5 22 points. New Century Computer issued $450 million of AA-rated 30-year $1,000 par bonds on this date in 2013, which have a coupon interest rate of 9 percent and pay interest annually. A decrease in the inflation rate by 2 percent and a decrease in corporate risk, (beta), have caused the required return on these bonds to be only 5 percent. 1. Find the annual interest payment 2. Find the current price of a bond.
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