Question: BOND VALUATIONS In the problems below, all coupon and yield rates are quoted as nominal rates payable semiannually (so r(2) and j(2) respectively). Use the


BOND VALUATIONS In the problems below, all coupon and yield rates are quoted as nominal rates payable semiannually (so r(2) and j(2) respectively). Use the following convention: the issue date is t = 0 and the first coupon payment occurs at t 1; t is measured in 1's of a year. If not specified otherwise, P refers to the price of the bond at the issue date t=0. Calculate the price P (at the issue date) of a 10-year bond with face value $100, coupon rate 5% and a yield rate 7.2%
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