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Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 3% for the first 4 years, 4%
| Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 3% for the first 4 years, 4% for the subsequent 5 years, and 5% for the final 3 years. If bonds of this risk are yielding 4%, estimate the bond's current price. Face value of the bond is $1,000 |
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Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
