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1. Zero-Coupon Bond Analysis: a) (15%) Calculate the present value of a zero-coupon bond issued with a ten-year maturity, given an effective annual yield rate

1. Zero-Coupon Bond Analysis: a) (15%) Calculate the present value of a zero-coupon bond issued with a ten-year maturity, given an effective annual yield rate of 9%, a market rate of 13%, and maturing on 27th December 2027. (Please use a 30/360 day count convention). b) (10%) Would the bond trade at par, at a premium, or at a discount? What would be the required market rate for the bond to trade at par? c) (15%) If the bond is currently trading at a discount of 150 basis points (from the purchase price), what would be its Yield To Maturity?

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