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PLEASE SHOW ON EXCEL 2) As an investor, you are considering buying a bond that pays 7% semiannual coupon. This bond has a $10,000 face
PLEASE SHOW ON EXCEL
2) As an investor, you are considering buying a bond that pays 7% semiannual coupon. This bond has a $10,000 face value and will mature in 25 years. If your required rate of return is 5.8% for bonds in this risk class, what is the highest price you would be willing to pay?
Bonus: Referring to problem 2,
Assuming required rate of return remains at 5.8%. What would you expect the price of this bond to be in 4 years?
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