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1. You are financial advisor for a friend who addresses the following issues: a) A company issues f10m face value of five-year zero-coupon bonds when

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1. You are financial advisor for a friend who addresses the following issues: a) A company issues f10m face value of five-year zero-coupon bonds when the interest rate is 6%. What is the initial price of the bond? b) A coupon bond of f100 pays annual coupons of 5% at the end of years 1,2 and 3 (when it also matures). If the discount rate is 8%, what is its price today? c) A coupon bond of 100 pays annual coupons of 5% at the end of years 1 and 2 (when it also matures). If it trades today at 93.01, what is its yield to maturity

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