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1) What is the amount you would pay for a $15008%10-year annual bond with 8 years remaining until maturity if the MIR was 9% ?

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1) What is the amount you would pay for a $15008%10-year annual bond with 8 years remaining until maturity if the MIR was 9% ? 2) Is this bond selling at a premium or discount? How do you know? ( 2 reasons) 3) What is the Yield to Maturity of this bond? 4) If this bond is callable at $1430 in 2 years, what is the Yield to Call of this bond? 5) If you sell the bond one year later, calculate the current yield, capital gains yield and total yield in the 3 following cases: a) MIR=9% b) MIR=11% c) MIR=7%

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