Which you have had to deal with adverse selection problem

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1. An investor holds a Ford bond with a face value of $5000, a coupon rate of 8.5%, and semiannual payments that matures on January 15, 2029. How much will the investor receive on January 15, 2029?

2. What must be the price of a $1000 bond with a 5.8% coupon rate, annual coupons, and 20 years to maturity if YTM is 7.8%?

3. Think of one example in which you have had to deal with the adverse selection problem?

4. If you are an employer, what kinds of moral hazard problems might you worry about with your employees?

Reference no: EM131322666

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Which you have had to deal with adverse selection problem : An investor holds a Ford bond with a face value of $5000, a coupon rate of 8.5%, and semiannual payments that matures on January 15, 2029. How much will the investor receive on January 15, 2029? What must be the price of a $1000 bond with a 5.8% coup..

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