Question: Q 2 . A bond with 2 0 years to maturity, a coupon rate of ( 4 % ) paid quarterly, and

Q2.A bond with 20 years to maturity, a coupon rate of \(4\%\) paid quarterly, and a face value of \(\$ 1000\) is currently trading at \(\$ 970\). a) Calculate the bond's yield to maturity (YTM). b) If you purchase this bond today and hold it for 7 months (receiving 2 coupon payments during this time), what would be the invoice price you would receive if you sell it one month after receiving the second coupon payment? c) Calculate the Holding Period Return (HPR) as an Effective Annual Rate (EAR) for the 7month investment period.
Q 2 . A bond with 2 0 years to maturity, a coupon

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