Question: A $ 1 , 0 0 0 bond has a coupoN rate of 4 percent and matures after ten years. a ) What is the
A $ bond has a coupoN rate of percent and matures after ten years.
a What is the current price of the bond if the comparable rate of interest is percent?
b What is the current price of the bond if the comparable rate of interest is percent?
c What are the current yields given the prices determined in parts and b
d Why are the prices in a and b and the current yields in c ditterent?
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