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2. Bond Pricing. A Metallico bond carries a coupon rate of 8 percent, payable semi-annually, has 9 years until maturity, and sells at a yield
2. Bond Pricing. A Metallico bond carries a coupon rate of 8 percent, payable semi-annually, has 9 years until maturity, and sells at a yield to maturity of 9 percent. a. What interest payments do bondholders receive each year? b. At what price does the bond sell? c. Calculate the bond price if the yield to maturity: (i) falls to 7 percent (ii) falls to 8 percent (iii) rises to 10 percent
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