Question: Suppose that Microsoft issued a bond with 5 years until maturity, face value of $10,000, coupon rate of 5% ( annual payments). The yield to

Suppose that Microsoft issued a bond with 5 years until maturity, face value of $10,000, coupon rate of 5% ( annual payments). The yield to maturity when it was issued was 4%. What was the price of this bond when it was issued? Assuming the YTM remains constant, what is the price of the bond immediately before and immediately after is makes its first coupon payment?

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