Suppose that you purchased a Baa rated $1000 annual coupon bond with an 10.9% coupon...
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Accounting
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 10.9% coupon rate and a 10-year maturity at par value. The current rate on 10-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 5.468%, how much is the bond currently worth?
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