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8. Suppose FINA Corp. has a bond issue [$1,000 face value] that pays a coupon of 10% per year. The bond matures in 30 years.

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8. Suppose FINA Corp. has a bond issue [$1,000 face value] that pays a coupon of 10% per year. The bond matures in 30 years. What is the value of the bond? Po = 9.Now, assume the market interest rate stays the same, what is the value of the bond in one year from now? Po = 10.Now, suppose in the second year, (how many years to maturity?), interest rates on a similar type of bond drops to 9%. What is the value of the bond? Po = 11. Next, after another year, with the market rate still at 9%, what will be the value of the bond? Po = 12.Calculate the one-year holding period return between 10 and 11? 13.Next, suppose in the 15th year, with the market rate still at 9%, what will be the value of the bond? Po = 14. What is the yield to maturity

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