A 25 year bond has a coupon rate of 12 and semiannual, Ask an Expert

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A 25 year bond has a coupon rate of 12% and semiannual coupon payments. The required nominal yield on the bond is 10%. Assume that the yield curve is downward sloping and the yield is expected to decline to 8%. a. What would be the value of the bond now? b. What should be the value of the bond in 7 years?

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Financial Management, Finance

Category:- Financial Management
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