Question: Floating rate bond LO16 2 You buy an 8 percent 25 year
Floating rate bond (LO16-2) You buy an 8 percent, 25-year, $1,000-par-value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 11 percent. What is your one best guess as to the value of the bond?
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