What is the price and duration of a 15 year 1000 par
What is the price and duration of a 15 year ($1000 par, semiannual payments) bond that pays zero interest for three years, then pays (15 percent - (the year). For instance, 15-.04 = 11% in year 4, 10% in year 3 etc. if the required return is 6%?
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