Consider a coupon bond with a time to maturity of 4 years. This bond, if things work
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Question:
a) What is the price of the bond if the yield to maturity is 6%?
b) How would the introduction of default risk change the value of the bond above?
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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