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Business, 30.10.2020 18:10 jeto32

5.A 15-year corporate bond has a par value of $100,000 and a 4.5% annual coupon rate. Assume that your required rate of return is 8% and that you plan to hold onto this bond for 10 years. You and the market have expectations that in 10 years the yield-to-maturity for this bond (or another bond with similar risk and maturity) will be 10%. How much are you willing to pay for this bond today

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5.A 15-year corporate bond has a par value of $100,000 and a 4.5% annual coupon rate. Assume that yo...
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