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    What is the value of a 20-year, 7% annual coupon bond if Kd equals 9%? What is the value if inflation increases 3%? What is the value if inflation decreases 3%? Show formulas and entries on a financial calculator.

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    What is the value of a 20-year, 7% annual coupon bond if Kd equals 9%? What is the value if inflation increases 3%? What is the value if inflation decreases 3%? Show formulas and entries on a financial calculator.

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    https://brainmass.com/business/bond-valuation/value-inflation-annual-coupon-56241

    Solution Preview

    In a calculator:
    Number of periods = 20
    Future value = 1000
    annual payment = 1000*7% = ...

    Solution Summary

    The value of inflation for annual coupons are determined. The value of the coupons if inflation increases is computed.

    $2.19

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