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How much are you willing to pay for bond x today

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Question: Bond X is a non callable and has 20 years to maturity, a 9% annual coupon and a $1,000 par value. Your requiredrate of return on Bond X is 10%; and if you buy it, you plan to hold it for 5 years. You expect that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 8.5%. How much are you willing to pay for Bond X today?

Reference no: EM131583672

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