Question: How would you define a corporate bond? Be specific in your answer and define all terms that you use. 2. The Associated Dry Goods Corp.

How would you define a corporate bond? Be specific in your answer and define all terms that you use.

2. The Associated Dry Goods Corp. zero coupon bond has 9 years to maturity and a face value of $1,000. The bond trades for $795.75 to yield 2.57%. What is the net cash flow from the bond? Explain how you got your answer.

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