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You buy a 10 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 12 percent.

You buy a 10 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 12 percent.

 

What is your one best guess as to the value of the bond?

  

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The best guess value is =( 100* 6.8108) + (1000 *0... View the full answer

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