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please provide step by step solution Suppose you purchased an Amazon Inc. bond with the following features six years ago, now selling for $935. The
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Suppose you purchased an Amazon Inc. bond with the following features six years ago, now selling for $935. The bond paid ann ........ in moumn interect on the last dav of each year, the last payment made today. You intend to hold the bond for 4 more years, i.e, till maturity of the bond. You also project that the bond will continue paying $100 in annual interest. Given the risk associated with the bond, its required rate of return (r) over the next four years is 11.25%. Please determine the fair present value of the bond and comment whether the bond is over-value or under-valued at present and to what extent. Suppose you purchased an Amazon Inc. bond with the following features six years ago, now selling for $935. The bond paid ann ........ in moumn interect on the last dav of each year, the last payment made today. You intend to hold the bond for 4 more years, i.e, till maturity of the bond. You also project that the bond will continue paying $100 in annual interest. Given the risk associated with the bond, its required rate of return (r) over the next four years is 11.25%. Please determine the fair present value of the bond and comment whether the bond is over-value or under-valued at present and to what extent Step by Step Solution
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