What is the value of the bond

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Reference no: EM132823564

Question - Consider a $100 par value bond issued by flying eagle with a maturity date of 2050 and a stated coupon rate of 8.5%. On January 1, 2007 the bond had 20 years left to maturity and the market required yield to maturity for similar rate was 7.5%. If the market required yield to maturity on a comparable risk bond is 7.5%. What is the value of the bond?

Reference no: EM132823564

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