Question: An analyst recently suggested that there will be a major economic expansion that will be favorably affect the prices of high -rated, fixed - rate

An analyst recently suggested that there will be a major economic expansion that will be favorably affect the prices of high -rated, fixed - rate bonds because the credit risk of bonds will decline as corporations improve their performance. Assuming that the economic expansion occurs, do you agree with analyst's conclusion? Explain. A bond had a $1000 par value, 10 years to maturity, and a 8% annual coupon bond and sell for $978. Calculate the Yield to maturity (YTM).Assume that the yield to maturity remains constant for the next 3 years. Calculate the price of bond for 3 years from today

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