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Suppose, three years ago, you purchased a 15-year coupon bond paying 5% interest annually with a face value of $1000. It is now three years
Suppose, three years ago, you purchased a 15-year coupon bond paying 5% interest annually with a face value of $1000. It is now three years later and you just received an interest payment yesterday (the bond matures in exactly twelve years). 1 You look in the paper and the yield on comparable debt is 6%. What is the bond currently worth?
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