1.A bond has a face value of $1000 with a time to maturity ten years from now....

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1.A bond has a face value of $1000 with a time to maturity ten years from now. The yield to maturity of the bond now is 10%.

a) What is the price of the bond today, if it pays no coupons?

b) What is the price of the bond if it pays annual coupons of 8%?

c) What is the price today if pays 8% coupon rate semi-annually?

Posted Date: May 19, 2024 07:08 AM

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1.A bond has a face value of $1000 with a time to maturity ten years from now....

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