Question
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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Get StartedRecommended Textbook for
Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
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