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1. Consider a 10-year bond with a 10% coupon rate (semiannual payments) and a $100 face value. 1) What is the initial price of this
1. Consider a 10-year bond with a 10% coupon rate (semiannual payments) and a $100 face value. 1) What is the initial price of this bond if it has a 12% yield to maturity? Is this a discount bond or premium bond? h 2) If the yield to maturity is unchanged, what will the price be immediately after the first coupon is paid? 3) If the yield to maturity is unchanged, what will the interest expense be in the first six-month? How much interest is actually paid? Why does bond value change after the first coupon payment
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