Planning bond issue with an escalating coupon rate

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Demand corporation is planning a bond issue with an escalating coupon rate. the annual coupon rate will be 4 percent for the first 3 years, 5 percent for the subsequent 3 years, and 6 percent for the final 3 years. if bonds of this risk are yielding 5 percent, estimate the bond's current price .

Reference no: EM13878024

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