An 8%, five-year bond yields 6%. It pays semi-annual coupon payments and has a face value of

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An 8%, five-year bond yields 6%. It pays semi-annual coupon payments and has a face value of 100.

i.If this yield to maturity (YTM) remains unchanged, calculate the expected price today and in one year's time.

ii.Calculate the total return to an investor who held the bond over the 1-year period.

Comment on the relationship between the bond return over a particular period and the YTM.

Posted Date: May 17, 2024 04:00 AM

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An 8%, five-year bond yields 6%. It pays semi-annual coupon payments and has a face value of

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