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Fly by Night Corp. sells $600,000 of bonds to investors. The bonds have a 7% annual...

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Finance

Fly by Night Corp. sells $600,000 of bonds to investors. Thebonds have a 7% annual coupon rate and seminannuall couponpayments. The bonds were sold to yield 10%. What seminannualpayment does Fly by Night make to the investors?

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4.1 Ratings (594 Votes)
While determining a bonds true value two factors always come in picture Coupon rate and Yield rate Coupon rate of a bond refers to the rate of interest that a bond issuer agrees to pay to investors    See Answer
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Fly by Night Corp. sells $600,000 of bonds to investors. Thebonds have a 7% annual coupon rate and seminannuall couponpayments. The bonds were sold to yield 10%. What seminannualpayment does Fly by Night make to the investors?

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