Question: please explain/answer number 4 thanks! 4. An analyst needs to assign a value to an illiquid four-year, 6.5% annual coupon payment corporate bond. The analyst

please explain/answer number 4
thanks!
 please explain/answer number 4thanks! 4. An analyst needs to assign a

4. An analyst needs to assign a value to an illiquid four-year, 6.5% annual coupon payment corporate bond. The analyst identifies two corporate bonds that have similar credit quality: One is a three-year, 6.50% annual coupon payment bond priced at 107.500 per 100 of par value, and the other is a five-year, 5.50% annual coupon payment bond priced at 104.750 per 100 of par value. Using matrix pricing, calculate the price of the illiquid bond per 100 of par value. Show your work

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