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Market rates for AA bonds on issue date are 9.5% What is each bond worth?
How much does PCL receive?
5th Sept 2007 Market rates for AA rated debt issues have remained constant at 9.5%. You are considering selling your bond in order to free up some cash for another investment opportunity you’ve seen. You’ve just received interest How much is the bond worth?
$
Why has this value changed?
5th Sept 2007 You’ve made you decision to sell. Unfortunately, the Reserve Bank of NZ raised the OCR by ?% before you did the deal and market rates for AA debt are now 10%pa. You decide to sell anyway...
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