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1. What is the value of a $1,000 par-value, recently issued 10 -year bond? The bond pays 8%, annual coupon payments? Similar bonds in the
1. What is the value of a $1,000 par-value, recently issued 10 -year bond? The bond pays 8%, annual coupon payments? Similar bonds in the market are yielding 8.25% 2. What would be the value of the bond above if the bond paid semi-annual coupon payments? 3. A bond with a par-value of $1,000 has 5 years until it matures. It pays a semi-annual coupon of 3%. What is the current value of the bond? 4. What is the YTM of a ten-year bond with a coupon rate of 10% that has three years left until maturity. The current price is $1,020. Assume the coupons are paid annually
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