Question: answer #2 only 1. Suppose Galaxy Corp. has a bond issue [$1,000 face value) that pays a coupon of 4% per year. The bond matures

answer #2 only

1. Suppose Galaxy Corp. has a bond issue [$1,000 face value) that pays a coupon of 4% per year. The bond matures in 20 years. What is the value of the bond? P = 2.Now, suppose in the second year. (how many years to maturity?), interest rates on a similar type of bond increases to 5%. What is the value of the bond? Po =

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