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Suppose that you purchased a Baa rated $1000 annual coupon bond with an 8.1 % coupon rate and a 5-year maturity. Two years later, you
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 8.1 % coupon rate and a 5-year maturity. Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.959 %, how much is the bond currently worth?
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