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    Bonds

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    1. A corporate bond was issued 10 years ago with a 25-year maturity, 12% coupon paid semi-annually, and AAA rating. Today bonds with similar maturities and credit quality are being issued at par with 7.5% coupons.

    Calculate the theoretical price of the bond, indicating your values for n, i, and PMT.

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    https://brainmass.com/business/convertible-bonds/calculating-theoretical-price-bond-178267

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    See the attached file.
    1. A corporate bond was issued 10 years ago with a 25-year maturity, 12% coupon paid semi-annually, and AAA rating. Today bonds with similar maturities and credit quality are being issued at par with 7.5% ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the theoretical price of the bond.

    $2.19

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