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One company is considering issuing bonds that pay annual coupons. The coupon rate would be equal to the bond's annual rate of return +.02. The
One company is considering issuing bonds that pay annual coupons. The coupon rate would be equal to the bond's annual rate of return +.02. The company estimates that the bond's selling price will be $120.21 if its maturity date is n-year with a face value of 100, and a selling price of $128.71 for a 2n-year bond with a face value of 100.
Find the price of a 3n year bond with a face value of 100.
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