RJR Nabisco recently experienced a market reevaluation due to a number of tobacco lawsuits. The firm has a bond outstanding with 15 years to maturity, and a coupon rate of 8%, with interest being paid semiannually. The required yield to maturity has risen to 16%. What is the price of the RJR Nabisco bond?
Answers: 2
+ A ![[\frac{1-\frac{1}{(1+r)^{N} } }{r} ]](/tpl/images/0571/3190/d9765.png)
+ 40 ![[\frac{1-\frac{1}{(1+0.16)^{30} } }{0.16} ]](/tpl/images/0571/3190/8ce82.png)
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RJR Nabisco recently experienced a market reevaluation due to a number of tobacco lawsuits. The firm...
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