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You have been asked to value a 40-year bond, issued by Boeing, with the following...

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Accounting

You have been asked to value a 40-year bond, issued by Boeing, with the following features: The coupon rate for the first 20 years will be 6% of the face value of $1,000. After 20 years, the coupon rate will be 6% of the face value of 7% for the remaining 20 years. Estimate the value of this bond, if Boeing is rated AA.(AA-rated bonds are trading at a default spread of 0.50% over the treasury bond rate of 6.50%). without excell.

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