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For this question, find the value a risky corporate bond given the following: 1 . risk - free interest rate is 4 percent per period
For this question, find the value a risky corporate bond given the following:
riskfree interest rate is percent per period
period is six months
The bond's face value is $ payable
two periods from now
the bond pays a coupon per period interest payments of
$ at the end of both the st and nd period
the assets make sufficient cash to pay off the promised coupon
period from now
there is a reserve fund of $ per bond to pay
off the promised coupon of the bond period
from now
There is more information in the photo provided to help answer the question. Please find the value of the risky corporate bond.
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