Question: Consider a junk bond with a 12 percent coupon and 20 years to maturity. The current required rate of return for this bond is 15

Consider a junk bond with a 12 percent coupon and 20 years to maturity. The current required rate of return for this bond is 15 percent. What is its price? What would its price be if the required yield rose to 17 percent 20 percent?

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