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1. 2 3 Suppose a seven-year, $1 000 bond with an 8.3% coupon rate and semi-annual coupons is trading with a yield to maturity of

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Suppose a seven-year, $1 000 bond with an 8.3% coupon rate and semi-annual coupons is trading with a yield to maturity of 6.36% a. Is this bond currently trading at a discount, at par or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.29% (APR with semi-annual compounding), what price will the bond trade for? a. Is this Suppose that Telstra Corporation Ltd issued a bond with 10 years until maturity, a face value of $1 000, and a coupon rate of 7.8% (annual payments). The yield to maturity on this bond when it was issued was 5.7%. What was the price of this bond when it was issued? When it was issued, the price of the bond was $ (Round to the nearest cent.) Suppose that Telstra Corporation Ltd issued a bond with 10 years until maturity, a face value of $1 000, and a coupon rate of 7.6% (annual payments). The yield to maturity on this bond when it was issued was 6.4%. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? Before the first coupon payment, the price of the bond is $. (Round to the nearest cent.)

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