Is your bond selling for a premium or at a discount based


Assuming interest rates are 5% for AAA Rated Corporate bonds, calculate the value of your bond relative to this interest rate using equation 11.2 in the text. Assume that i = 5%. Is your bond selling for a premium or at a discount based on your calculation? What other factors can impact bond valuation?

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Finance Basics: Is your bond selling for a premium or at a discount based
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