Question: 10. Bond pricing Aa Aa E Understanding Bond Pricing Suppose your friend tells you that she recently purchased a 20-year $3,000.00 bond with a 9%

10. Bond pricing Aa Aa E Understanding Bond Pricing Suppose your

10. Bond pricing Aa Aa E Understanding Bond Pricing Suppose your friend tells you that she recently purchased a 20-year $3,000.00 bond with a 9% coupon. A month later, she saw it quoted at 83:12, but she does not know what this means. You can tell by the way the bond is priced that she has a been priced You explain that the market price of her bond is now bond. bond; otherwise it would have meaning it is now a Based on the market price of the bond you calculated, you can tell that market interest rates have gone since the bond was issued. The current yield of the bond is now

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