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Business, 04.12.2020 16:50 21teunissen149

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 5 % Inflation premium 5 Risk premium 4 Total return 14 %

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Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life...
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