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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A stock is quoted at $1,180. The $1,000 par value bond pays 14% interest, and it has 25 years remaining until maturity. The current yield to maturity on similar bonds is 12%. Compute the new price of the bond and comment on whether you think it is overpriced in the marketplace
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