Question 5.9: A company has in issue some 9 per cent bonds which are redee...

Corporate Finance Principles and Practice [693350]

A company has in issue some 9 per cent bonds which are redeemable at nominal value of £100 in three years’ time. Investors require a yield of 10 per cent. What will be the current ex-interest market value of each bond? What would be the current ex-interest market value if the bonds had been irredeemable?

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