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A friend is selling you today a bond purchased in 2010 with a 25-year maturity at...

A friend is selling you today a bond purchased in 2010 with a 25-year maturity at $ 910.00. The bond has an annual coupon rate of $ 80. The prevailing rate in the current market is 10.0%. What is the value of the bond? Would you buy it if interest rates plan to drop to 6% in two years? How much would you earn if you wait for expiration?


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