Question: 2 . A company has issued a bond with a par value of $ 1 , 0 0 0 and with coupon rate of 6

2. A company has issued a bond with a par value of $1,000 and with coupon rate of 6% paid semi-annually with maturity of ten years.
A) What is the bonds price after a year if similar risk bonds has coupon rate of 8%?
B) The bond can be called on its 5th year at $1,020. What is the yield to call if the bonds price is $990.

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