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1, no excel 1.Based on the following information, answer the questions. 1) Facebook issued 10-year bonds with a par value of s1,000 and a coupon
1, no excel
1.Based on the following information, answer the questions. 1) Facebook issued 10-year bonds with a par value of s1,000 and a coupon rate of 12%, paid semiannually. The yield to maturity on this bond is 10%. ID) Is the bond price greater or less than $1,000, based on the relationship between the coupon rate and the yield to maturity? (30points) 11) Suppose that the yield to maturity changes to 14% recently. Given the same information, what is the bond price? (30points) I) Figure out the yield to maturity if the price is $990 for the 10-year bond with a par value of $1,000 and a coupon rate of 12% paid semiannually. (30points) Step by Step Solution
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