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You have been asked to estimate the value of a 1 0 - year bond with a coupon that will be low initially but it
You have been asked to estimate the value of a year bond with a coupon that will be low initially but it is expected to grow later in the bonds life. The coupon is expected to be of the face value of the bond which is $ for the first years, and will increase by every year for the next years the coupon rate will be in year in year in year in year and in year Estimate the value of this bond.
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