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8 What do you expect to happen if you buy a bond at par and hold it till maturity? 9 If a 10 year
8 What do you expect to happen if you buy a bond at par and hold it till maturity? 9 If a 10 year bond has a coupon rate of 4% and prevailing rates are 5% what should you expect to pay for the bond? (Assume $1,000 bond with annual interest payments) 10 A 10 year US Treasury bond has a coupon payment of 6%. The yield to maturity is 5%. You want to buy the bond, how much will you pay for it?
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
