Question: Q4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in five years, and has a yield to maturity
Q4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in five years, and has a yield to maturity of 10%. if the coupon rate is 8%. What the intrinsic value of the bond today will be ? Q6.A Treasury bond due in one year has a yield of 6.2%; a Treasury bond due in five years has a yield of 6.7%. A bond issued by Xerox due in five years has a yield of 7.9%; a bond issued by Exxon due in one year has a yield of 7.2%. What are the default risk premiums on the bonds issued by Exxon and Xerox ? Q7. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in five years, and has a yield to maturity of 10%. If the coupon rate is 12% what the intrinsic value of the bond today will be ?
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