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Consider a junk bond with a 10 percent coupon and 20 years to maturity. The current required rate of return for this bond is 15
Consider a junk bond with a 10 percent coupon and 20 years to maturity. The current required rate of return for this bond is 15 percent. What is the price? What would be its price if the required yield rose to 18 percent? 20 percent
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