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2-year coupon bond par = 100, coupon rate = 5% (annual compounding) current market price po = 98. 1) find ytm (t=0 to 2). (write

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2-year coupon bond par = 100, coupon rate = 5% (annual compounding) current market price po = 98. 1) find ytm (t=0 to 2). (write formula and get app answer) 2) price 1 year from issuance: p1 = 99.2, find ytm (t=1 to 2) (this says that one year later the yield has changed from the ytm in 1). (write formula and compute)

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