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Imagine a thirty - year bond that was originally sold 7 years ago when the interest rate was 6 % . It includes a payment
Imagine a thirtyyear bond that was originally sold years ago when the interest rate was It includes a payment of $ for each of the next years and a $ payment at the end of those years. If the current prevailing interest rate on alternative investments is what is the value of this bond today? If the coupons were stripped and two instruments were created the coupons and the final payment, zerocoupon bond what is the value of the coupons? the zero coupon portion? Show your work.
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