Question: Aza & Co. issued 18 years maturity bonds 3 years ago that is paying $50 coupon semiannually for the first 5 years, $30 quarterly for

Aza & Co. issued 18 years maturity bonds 3 years ago that is paying $50 coupon semiannually for the first 5 years, $30 quarterly for next five years and $2 coupon in every two months thereafter till maturity of bond. Aza & Co. has just issued zero coupon bond for $125 with maturity of 15 years. If the market interest rate is fluctuating between 12 percent for the first 9 years and 14 percent thereafter find the bond value three years from today. What will the value of Zeros be 12 years from today?

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