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Find the price of the bond

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Question - Ajax wants to issue a 10 year-zero coupon bond. The yield on 10-year T-bonds is 2.5%. Ajax has a rating of BBB, and you estimate the default risk premium at 4%. The bonds will be privately placed, so trading will be difficult. The liquidity premium is 1.5%. Find the price of the bond.

Reference no: EM132560522

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