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Consider a two-period coupon bond with face value M=100, recovery rate = 0.5 , per period coupon rate c=10%, and survival rate =0.9. If the
Consider a two-period coupon bond with face value M=100, recovery rate = 0.5 , per period coupon rate c=10%, and survival rate =0.9. If the risk-free rate per period is 5%, what is the bond price now? - P=1+5%9+5.5+(1+5%)289.1+4.95=99.116
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