Question: question 11& 12 please 11 A 7% coupon rate bond makes annual interest rate payments. Par value is $1,000. The bond matures in 13 years.
11 A 7% coupon rate bond makes annual interest rate payments. Par value is $1,000. The bond matures in 13 years. The required rate of return is 5%. What is the current price Payment is calculated by multiplying the coupon rate by the par value 7%,x,000=$70 a. 1,125.17 b. 1,154,35 c. 1,187,87 d 1,245.25 12 Observing the current yield curve of us Treausury securities a. it appears to have not changed shape in the last five (5) years b. if appears to be completely flat however rates have been rising and falling in paralle: c. If appears short-4erm rates are higher than long-term rates d. It appears the curve is upward sloplog or normal e. the curve appears to be completely
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