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3 . A $ 1 , 0 0 0 - face - value bond has a current market price of $ 9 3 5 ,
A $facevalue bond has a current market price of $ an percent coupon rate, and years remaining until maturity. Interest payments are made semiannually. Before you do any calculations, decide whether the yield to maturity is above or below the coupon rate. Why?a What is the implied marketdetermined semiannual discount rate ie semiannual yield to maturity on this bond?b Using your answer to Part a what is the bonds inominal annual yield to matur ity? iieffective annual yield to maturity
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