The bond makes annual payments

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1. What is the value of a 5-year 10% coupon bond with a face value of $1,000? The required return on the bond is 12% and the bond makes ANNUAL payments.

2. Yield curve is flatenning

Recently the yield curve is getting more and more flat. Should we worry about this? What should an investor who anticipates an inverted yield curve do now to win?

Reference no: EM131975116

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