(Bond valuation) Bank of America has bonds that pay a coupon interest rate of 10 percent...
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(Bond valuation) Bank of America has bonds that pay a coupon interest rate of 10 percent and mature in 30 years. If an investor has a required rate of return of 4.7 percent, what should she be willing to pay for the bond? What happens if she pays more or less? (Bond valuation) Bank of America has bonds that pay a coupon interest rate of 10 percent and mature in 30 years. If an investor has a required rate of return of 4.7 percent, what should she be willing to pay for the bond? What happens if she pays more or less?
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