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Based on the following information concerning YYU bonds: Par value: $1,000 Years to maturity: 25 years Coupon rate: 8% paid semiannually Beta: 1.5 Risk-free rate:

Based on the following information concerning YYU bonds:

Par value: $1,000

Years to maturity: 25 years

Coupon rate: 8% paid semiannually

Beta: 1.5

Risk-free rate: 4%

Market risk premium: 8%

What is the expected price of the bond in 4 years? Assume that the interest rate will remain at the current rate.

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