Assume that bond trades at 7.125 % yield. What is PV of the $100MM to be paid

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Assume that bond trades at 7.125 % yield. What is PV of the $100MM to be paid in 1000 Year?

Q.3.2 Calculate the duration of this bond. What happens to bond's duration if yield goes from 7.125 % to 4%

Q.3.3. Markets expect rates to go down. Which financial institutions would be natural buyers of the 1000Y bond ?

Q.3.4 Does a buyer of the 1000-Y bond believe that Safra Republic Bank will still exist in 1000 Years?

Related Book For answer-question

Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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Posted Date: Mar 10, 2023 01:08 AM

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Assume that bond trades at 7.125 % yield. What is PV of the $100MM to be paid

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31 PV of 100 MM to be paid in 1000 years 100 million 1071251000 12857 1022 32 Since there is ... View the full answer

Advanced Accounting

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