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1. What is the price of a 4-year bond with a nominal value of $100, a yield to maturity of 7% (with annual compounding frequency),
1. What is the price of a 4-year bond with a nominal value of $100, a yield to maturity of 7% (with annual compounding frequency), a 10% coupon rate and an annual coupon frequency?
2. Same question for a yield to maturity of 8%, 9% and 10%. Conclude.
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