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You own a bond with a purato $2.000 the past coupon The bed matures in 17 year. Your required rute ofre is 12 a. Calculate
You own a bond with a purato $2.000 the past coupon The bed matures in 17 year. Your required rute ofre is 12 a. Calculate the value of the bond. . How does the value of the bond change if your required rate of return D) increases to 159 pa, or ii) decreases to 8% per annum? e. Assume that the bond matures in 8 years instead of 17 years. Recompute your answers to part (o)
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