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1A: A firm has an issue of $1000 par value bonds with a 6 percent coupon. The issue pays interest annually and has 10 years

1A: A firm has an issue of $1000 par value bonds with a 6 percent coupon. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of the same risk are currently earning 10.5 percent, what is the price of the bond? Round it two decimal places, and do not include the $ sign, e.g., 935.67.

1B: Consider a 23-year bond with 8 percent annual coupon payments. The market rate (YTM) is 7.5 percent for this bond. The current yield of the bond is _______ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69.

1C: Suppose the risk-free real rate is 4.9 percent and the inflation rate is 3.2 percent. You would expect to see a rate of ______ percent on a Treasury bill. Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

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