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1. Assume you have the following corporate bond quote on November 6, 2020: Price 102.13 Coupon (%) 5.080 Maturity June 1, 2025 YTM (% 4.79

1. Assume you have the following corporate bond quote on November 6, 2020: Price 102.13 Coupon (%) 5.080 Maturity June 1, 2025 YTM (% 4.79 Current Yield (%) 5.015 Fitch Ratings AA Callable? No a. Using the information above, what is the price of the bond? (3 points) b. Now assume that you do some additional research before you buy this bond. If other bonds with the same time to maturity and the same credit rating have a 5.24% YTM. What would be the price of the bond if it had a YTM of 5.24%? (6 1. Assume you have the following corporate bond quote on November 6, 2020: Price 102.13 Coupon (%) 5.080 Maturity June 1, 2025 YTM (% 4.79 Current Yield (%) 5.015 Fitch Ratings AA Callable? No a. Using the information above, what is the price of the bond? (3 points) b. Now assume that you do some additional research before you buy this bond. If other bonds with the same time to maturity and the same credit rating have a 5.24% YTM. What would be the price of the bond if it had a YTM of 5.24%? (6

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Recommended Textbook for

Corporate Finance A Focused Approach

Authors: Michael C. Ehrhardt, Eugene F. Brigham

6th edition

978-1305637108

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