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Suppose you buy a bond t on 30/12/2019 for US $ 10000 that is redeemed in 2040. These bonds offer an annual return of 7%;

Suppose you buy a bond t on 30/12/2019 for US $ 10000 that is redeemed in 2040. These bonds offer an annual return of 7%; if you want to sell your bond today, what would the correct price be? Assume that those bonds we quoted with 20-year treasury bond plus a premium of 250 base points on the purchase date.

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