Question: Consider a bond, whose coupons are paid annually and whose price and coupon are shown below. The bond has 10-year maturity. Assume face value
Consider a bond, whose coupons are paid annually and whose price and coupon are shown below. The bond has 10-year maturity. Assume face value is $100 4 Bond Coupon 291 Price (4) 80.50 a. What is the rate which will equalize the price and the discounted cash flows of the bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (56) Answer . Cakculate that number which will allow you to assess the level of interest rate risk of the bond. (Do not round intermediate alculations. Round your answers to 2 decimal places.) Bond Coupon (%) 4 answer years
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