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Value a bond with $1000 face value, 6% of coupon rate,coupons are paid semiannually, 20 years of maturity, the YTM is 5%. If the risk
Value a bond with $1000 face value, 6% of coupon rate,coupons are paid semiannually, 20 years of maturity, the YTM is 5%. If the risk free rate goes up by 0.5%, what will be the price of the bond. If you know that the firm will call the bond at the end of year 10, for a value of $1200, what will be the current price?
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