Question: 1 A bond with a $1,000 par value has an 7.5% coupon rate. It will mature in 5 years, and coupon payments are made semi-annually.

1 A bond with a $1,000 par value has an 7.5%

1 A bond with a $1,000 par value has an 7.5% coupon rate. It will mature in 5 years, and coupon payments are made semi-annually. Present annual yields on similar bonds are 8.65%. What should the current price be; 959.95 957.99 956.35 954.11 0 0 2 A bond with a $1,000 par value has an 7.5% coupon rate. It will mature in 5 years, and coupon payments are made semi-annually. If bonds of similar risk are expected to yield 9.35% in two years, what will the value of the bond be then. Value the bond in two (2) years when n=3 957.99 956.35 654.11 952.56

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