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What is the price of the following split coupon bond if comparable yields are 12 percent? Principal $1,000 Maturity 12 years Annual coupon 0% ($0)
What is the price of the following split coupon bond if comparable yields are 12 percent? Principal $1,000 Maturity 12 years Annual coupon 0% ($0) for years 1-3 10% ($100) for years 4-12 If comparable yield decline to 10 percent, what is the appreciation in the price of the bond? How can I compute this in excel?
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