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You own a bond with a par value of $2.000 that pays a $200 anal coupon. The bed matures in 17 years. Your required rate

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You own a bond with a par value of $2.000 that pays a $200 anal coupon. The bed matures in 17 years. Your required rate of return is 12 pa a. Calculate the value of the hond. b. How does the value of the bond change if your required rate of return D increases to15 Sep.a., or ii) decreases to 85e per annum? C. Assume that the bond matures in 8 years instead of 17 years. Recompute your answers to part (b). . Arial

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