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Devry University
Jan-2008 - Jan-2011
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Devry University
Feb-2000 - Jan-2004
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Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Showbiz, Inc., has issued eight-year bonds with a coupon of 6.375 percent and semiannual coupon payments. The market’s required rate of return on such bonds is 7.65 percent.
a. What is the market price of these bonds?
b. If the above bond is callable aft er five years at an 8.5 percent premium on the face value, what is the expected return on this bond?
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