Answers to Text Discussion Questions

The par value bond is callable to $1,080 and this may hold down the potential price appreciation of the bond. Even if both bonds increase in value as indicated in parts (a) and (b), the deep discount bond will have the larger percentage gain. Deep Discount Bond. New value (Part A) $801.79. Original value 656.80. Gain in value $144.99. Gain in ... ................
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