Question: Chapter 7 Homework: All bonds are semi-annual. All yield measures are stated as annual percentage rates. You must show your work. 1. Suppose you buy

 Chapter 7 Homework: All bonds are semi-annual. All yield measures are

Chapter 7 Homework: All bonds are semi-annual. All yield measures are stated as annual percentage rates. You must show your work. 1. Suppose you buy a 20 year 6% (Coupon Rate) bond that has a yield to maturity (YTM) of 7%. What is the price of the bond? 2. Suppose you buy a 30 year 6% bond that has a YTM of 5%. What is the price of the bond? 3. Suppose you buy a 10 year 9% bond that has a YTM of 7%. What is the price of the bond

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