T9 EIC 3 (Lecture) Woolworths decides to finance an investment project with a b...
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T9 EIC 3 (Lecture)
Woolworths decides to finance an investment project with a bond issue. The bonds have a Face Value of $1mil each, pay a semi-annual coupon of 7% and have a term of 5 years.
As a prospective buyer, you require a YTM of 6%. What price will you pay for each bond?
(enter your answer as a number only without commas or $ to 2 decimal places. e.g. 8888.88. Not following this convention may result in Moodle incorrectly marking your answer.)Want instant access to all verified answers on learning.monash.edu?
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