Question: 1.a. How much would you pay for a 10-year bond with a face value of $1,000 and a coupon rate of 8% if you wanted

1.a. How much would you pay for a 10-year bond with a face value of $1,000 and a coupon rate of 8% if you wanted a 5% yield to maturity?

b. Find the rate of return for this bond if you plan to sell it after four years for $1,259.34.

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