Question: Question 2 Suppose that you purchased a Baa rated $ 1 0 0 0 annual coupon bond with an 8 . 1 % coupon rate

Question 2
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 8.1% coupon
rate and a 9-year maturity at par value. The current rate on 9-year US treasuries is 3%. Two
years later, you look in the newspaper, and find that the yield on comparable debt is
6.892%, how much is the bond currently worth?
Question 2 Suppose that you purchased a Baa rated $1000 annual

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