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Doisneau 16?-year bonds have an annual coupon interest of 12 ?percent, make interest payments on a...

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Finance

Doisneau 16?-year bonds have an annual coupon interest of 12?percent, make interest payments on a semiannual? basis, and have a?$1,000 par value. If the bonds are trading with a?market'srequired yield to maturity of 13 percent, are these premium ordiscount? bonds? Explain your answer. What is the price of the?bonds?

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3.9 Ratings (455 Votes)
Doisneau bonds are discount bonds as the coupon rate of 12 is lower than prevailing interest rate of 13 When a bond sells at a price lower than its par value is known as discount bond Market interest rate and bond price    See Answer
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Doisneau 16?-year bonds have an annual coupon interest of 12?percent, make interest payments on a semiannual? basis, and have a?$1,000 par value. If the bonds are trading with a?market'srequired yield to maturity of 13 percent, are these premium ordiscount? bonds? Explain your answer. What is the price of the?bonds?

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