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1. For a 3 year bond with a 12% coupon paid annually and a $1000 face value. a. What is the dollar amount of interest

1. For a 3 year bond with a 12% coupon paid annually and a $1000 face value.

a. What is the dollar amount of interest paid per year

b. How much do you get back at the end of the life of the bond?

c. What is the price of the bond if you get a 12% yield to maturity?

d. What price would you pay if you needed to get a 10% return?

e. What price would you pay market yields are 15%?

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