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You have just purchased a newly issued 1 0 0 0 $ five year vanguard company bond at par,with 1 2 % coupon paid semianualy
You have just purchased a newly issued $ five year vanguard company bond at par,with coupon paid semianualy : the company has issued another bond with a coupon of paid semi annually with six years remaining to maturity assuming that these two bones have the same yield to maturity what should you be willing to pay for that Bond? B ASSUMING that after one year, the yield increaes by calculate the capital gain for both bonds
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