Question: Question 3 (4 points) A bond with a $1000 face value and an 4 percent coupon pays interest semiannually. The bond will mature in 20

Question 3 (4 points) A bond with a $1000 face value and an 4 percent coupon pays interest semiannually. The bond will mature in 20 years. The nominal yield to maturity is 14 percent. What is its value? If the market rate (yield) on a bond is less than its coupon rate (and remains that way), the value of that bond will always be below its par value until the bond matures, when its value will equal par

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