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A $5000 annual coupon bond with an 5.3% coupon rate and a 18-year maturity at par value. The current rate on 18-year US treasuries is
A $5000 annual coupon bond with an 5.3% coupon rate and a 18-year maturity at par value. The current rate on 18-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.152%, how much is the bond currently worth?
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