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Business, 24.10.2019 23:43 daedae11142

Ben owns investment a and 1 bond b. the total value of his holdings is $2,800. bond b has a coupon rate of 8.80 percent, par value of $1000, ytm of 9.40 percent, 14 years until maturity, and semi-annual coupons with the next coupon due in 6 months. investment a is expected to pay annual cash flows to ben of x per year forever with the first annual cash flow expected in 1 year from today. the expected return for investment a is 7.91 percent. what is x, the fixed annual cash flow that will be paid forever by investment a?

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Ben owns investment a and 1 bond b. the total value of his holdings is $2,800. bond b has a coupon r...
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