Chapter 14 Business Valuations - Yola

D $125·00 24. Some years ago, Megellan Ltd issued bonds that pay interest on an annual basis at the rate of 8·0%. Interest has just been paid on the bonds, which are due for repayment in exactly two years’ time. The bonds will be redeemed at $110 per $100 nominal value. A yield of 10% per year is required by investors for such bonds. ................
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