Bora purchases a 30 year annual coupon bond in the primary market for $1,000. The bond has
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Question:
b) What would the selling price be if it was a 20 year bond instead of a 30 year bond?
Please provide your solution.
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a) What is the competitive market value of the bond in the secondary market?
(To have a full mark in this question, you NEED to show your work in detail . Please provide your solution.
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