Quiz Ch 07 – T/F Bond Investment Decision Based on Required Return and Price
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: You possess funds to invest in bonds and have observed a $1,000 par value bond available for $800. With a 10% coupon rate (annual payments) and 10 years until maturity, you should purchase the bond if your demanded return on bonds of this risk level is 12%.