RSM332H1 Lecture : Q5 Bond Valuation (Hard)
Document Summary
The mckeegan corporation has two different bonds currently outstanding. Bond m has a face value of and matures in 20 years. The bond makes no payments for the first six years, then pays every six months over the subsequent eight years, and finally pays every ix months over the last six years. Bond n also has a face value of and a maturity of 20 years; it makes no coupon payments over the life of the bond.