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Consider a $1000 face value bond that sells for an initial price of $450. It will pay no coupons for the first 10 years and will then pay a 6.25% coupon each year for the remaining 20 years. Write an equation that shows the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. Pease explain in mathematical expressions, not in excel form.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92815224

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