Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.85% coupon rate, payable semi-annually. It is now 10 years later and the current market rate of interest is 9.00%. If interest rates remain at 9.00% until Quirk's bonds mature, what will happen to the value of the bonds over time?
Answers: 2
= 40
= 4.5. CPT PV
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Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.85% coupon...
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