Assume the rf is 3 the yield curve is flat and bonds that, Financial Management

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Assume the rf is 3 the yield curve is flat and bonds that

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XYZ company is selling a bond that pays a decreasing coupon rate. It is a 10 year bond that pays 0% interest for one year, then increases by 1% a year.

Assume the RF is 3%, the yield curve is flat, and bonds that are similiarly risky offer a 200 Basis point premium. What whould be the priceof the bond.

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Financial Management: Assume the rf is 3 the yield curve is flat and bonds that

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