However the return on other bonds of similar risk is 12 pa


AMP Chemicals Inc. decides to issue 10-year bonds with a par value of $1,000 and annual coupon payments at the coupon interest rate of 15%. However, the return on other bonds of similar risk is 12% p.a. at the market. What would be a fair price for these bonds?

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Financial Management: However the return on other bonds of similar risk is 12 pa
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