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3. GAME is thinking of financing its growth through a new bond issue. The Settlement day would be 3/12/21. Interest rates are rising and the
3. GAME is thinking of financing its growth through a new bond issue. The Settlement day would be 3/12/21. Interest rates are rising and the coupon rate would likely be 3.8% for the 10 year bond, a par value of $1,000. The bond will pay interest quarterly. The bond is priced 102% of par. a. What is the yield on the bond? (7 pts) 3.56% b. How can you use the relationship between coupon rate and yield to know if this is premium or discount bond? (5 pts) Qualitative
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