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Author Question: Five years ago Fairfield Farms Inc. issued 20 year semi-annual coupon bonds with a 9 annual coupon ... (Read 85 times)

NguyenJ

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Five years ago Fairfield Farms Inc. issued 20 year semi-annual coupon bonds with a 9 annual coupon rate and a 1,000 face value. If the bonds currently carry a yield to maturity of 6, what is the current price of a bond?
 
  A) 1,346.72
  B) 1,294.01
  C) 1,344.10
  D) 1,291.37

Question 2

Redesign Corp is considering a new strategy that would increase its expected return from 12 to 13.9, but
  would also increase its beta from 1.2 to 1.8.
 
  If the risk-free rate is 5 and the return on the market is expected to
  be 10, should Redesign change its strategy?


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mochi09

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NguyenJ

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Reply 2 on: Jul 11, 2018
Excellent


CAPTAINAMERICA

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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