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(Step-by-Step) $1000 par value 15 years maturity bond with a coupon interest rate that changes every 5 years. First 5 years rate = 10%, Second 5 years = 10.75%,

Question: $1000 par value 15 years maturity bond with a coupon interest rate that changes every 5 years. First 5 years rate = 10%, Second 5 years = 10.75%, Last 5 years = 11.5%. If you require a 11% rate of return on the bond. Interest is paid annually at the end of each year.

Q) What would be the maximum price you would pay for this bond?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document

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(Step-by-Step) $1000 par value 15 years maturity bond with a coupon interest rate that changes every 5 years. First 5 years rate = 10%, Second 5 years = 10.75%,

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