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Cheltenham College Ltd has just issued some corporate bonds that have a 10-year term to maturity. The face value per bond is $1,000; the coupon
Cheltenham College Ltd has just issued some corporate bonds that have a 10-year term to maturity. The face value per bond is $1,000; the coupon rate is 5% p.a., with coupons being paid annually. Assume that similar bonds trade at a market rate of interest (i.e. yield to maturity) of 6% p.a. The best estimate of the value of one of these bonds is
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