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tinker spy corp has a high yield junk bond with th...

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tinker spy corp has a high yield junk bond with the following features: Principal..... $1000 Coupon..... 0% for years 1-5 10% for year 5-10 Maturity..... 10years The current interest rate on comparable debt is 10%. If you expect that the interest rate will be 8% five years from now, what is your potential gain or loss if your expectation is correct and interest rates are 8 % after 5 years?,thank you

 

Paper#7031 | Written in 18-Jul-2015

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