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Suppose that you purchased a A rated $5000 annual coupon bond with an 6.9% coupon rate and a 13-year maturity at par value. The current
Suppose that you purchased a A rated $5000 annual coupon bond with an 6.9% coupon rate and a 13-year maturity at par value. The current rate on 13-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 9.345%, how much is the bond currently worth?
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