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You have been asked to value a 10-year coupon bond with the following features. The coupon rate for the first 5 years will be [(2/2)+8]%
You have been asked to value a 10-year coupon bond with the following features. The coupon rate for the first 5 years will be [(2/2)+8]% of the face value of $1,000. After 5 years, the coupon rate will decline to [(2/2)+6]% for the remaining 5 years. The yield to maturity of this bond is 7.5%.
NOTE: Provide your answers with four decimals after the dot. If your answer is 20 you must enter 20.000.
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