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1. Refer to the figure below and look at the Treasury bond (par value $1000 ) maturing in February 2036. a. How much would you
1. Refer to the figure below and look at the Treasury bond (par value $1000 ) maturing in February 2036. a. How much would you have to pay to purchase one of these bonds? b. What is its coupon rate? (Round your answer to 2 decimal places.) c. What is the bond's current yield (coupon income as a fraction of bond price)? 2. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t=1). b. What will be the divisor for the price-weighted index in year 2? c. Calculate the rate of return of the price-weighted index for the second period
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