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Mark has a Treasury bond that has a par value of $30,000 and a coupon rate of 9%. The bond has 11 years to maturity.
Mark has a Treasury bond that has a par value of
$30,000
and a coupon rate of
9%.
The bond has
11
years to maturity. Mark needs to sell the bond and new bonds are currently carrying coupon rates of
7%.
For what price should Mark sell the bond in this situation?
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