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Suppose the Company B issues a bond with 10 years to maturity. The Company B bond has annual coupon of $500. Company B will pay
Suppose the Company B issues a bond with 10 years to maturity. The Company B bond has annual coupon of $500. Company B will pay $5,000 to the bondholder in ten years. Assuming similar bonds have a YTM of 10%. What will this bond sell for?
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