A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the
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Question:
A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays interest annually.
- What would be the bond's price if comparable debt yields 10 percent? $
- What would be the price if comparable debt yields 10 percent and the bond matures after five years? $
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