You own 30-year bonds issued by test inc that are, Ask an Expert

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You own 30-year bonds issued by Test Inc that are non-callable, have a $95 coupon, and a par value of $1000. You plan to hold the bond for 10 years and your required rate of return on this bond is 8%. You plan to buy it and hold it for 10 years at which time you (and the market) think that the yield to maturity on similar 20-year bonds will be 5%. How much would you be willing to pay for the bond today?

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Financial Management, Finance

Category:- Financial Management
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