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Suppose that on January 1 , 2 0 2 4 you purchase a $ 1 , 0 0 0 face value corporate bond with an

Suppose that on January 1,2024 you purchase a $1,000 face value corporate bond with an 4% coupon rate and a maturity of January 1,2034.
On January 1,2024, the zero coupon yields on U.S. Treasury securities maturing over the next 10 years are given below.
Suppose that the corporate bond that you purchased has a 150 basis point risk premium for its cash flows at all maturities.
What price would you be willing to pay for the bond?
Zero Coupon
US Treasury
Maturity Yields
7/1/20242.02
1/1/20252.12
7/1/20252.22
1/1/20262.32
7/1/20262.42
1/1/20272.52
7/1/20272.62
1/1/20282.72
7/1/20282.82
1/1/20292.92
7/1/20293.02
1/1/20303.12
7/1/20303.22
1/1/20313.32
7/1/20313.42
1/1/20323.52
7/1/20323.62
1/1/20333.72
7/1/20333.82
1/1/20343.92

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