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Suppose VCC firm has an outstanding 30-year bond that pays semi-annual coupons. It is a 7% coupon bond with a $1,000 par value and is

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Suppose VCC firm has an outstanding 30-year bond that pays semi-annual coupons. It is a 7% coupon bond with a $1,000 par value and is currently selling at par. Because of potential changes in interest rates, the price of the VCC bond could be $600 or $1,300 at the end of the year with equal probability. a) What is the expected value of the VCC bonds after 1 year

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