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Suppose that all investors expect that interest rates for the next 4 years will fall, resulting in a downward sloping yield curve. What is the
Suppose that all investors expect that interest rates for the next 4 years will fall, resulting in a downward sloping yield curve. What is the price of a bond maturing in 12 years with a 7% coupon rate paid semi-annually, priced to yield 6.75%? (Par value = $1,000)
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