Question: A two year bond that yields 10% has a coupon rate of 10%. a. What is the price this bond will sell for? b. What

A two year bond that yields 10% has a coupon rate of 10%.

a. What is the price this bond will sell for?

b. What is the dollar value of the coupon that is paid?

c. What is the price it should pay for if the market yields now drop to 8%?

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