Posted: March 23rd, 2017
Bond value and changing required returns Midland Utilities has outstanding a bond
issue that will mature to its $1,000 par value in 12 years. The bond has a coupon
interest rate of 11% and pays interest annually.
bond (y axis)” axes.
interest rate on a bond and the required return and the market value of the bond
relative to its par value.
coupon interest rate?
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