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Assuming interest rates are 5 for aaa rated corporate bonds

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Reference no: EM13380086

Assuming interest rates are 5% for AAA Rated Corporate bonds, calculate the value of your bond relative to this interest rate using equation 11.2 in the text. Assume that i = 5%. Is your bond selling for a premium or at a discount based on your calculation? What other factors can impact bond valuation?

The bond is

GOVT

iShares Core US Treasury Bond (SELECT)

 

Reference no: EM13380086

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