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3.Next, after another year, with the market rate still at 5%, what will be the value of the bond? Po 4.Calculate the one-year holding period

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3.Next, after another year, with the market rate still at 5%, what will be the value of the bond? Po 4.Calculate the one-year holding period return between 2 and 3? 5. Going back to the scenario in #1 above, suppose the interest rates fall to 3% the year after Galaxy bonds were issued. What would this do to the value of Galaxy's bonds? Po 1.Suppose Galaxy Corp, has a bond issue ($1.000 face value) that pays a coupon of 4% per year. The bond matures in 20 years. What is the value of the bond? P. 2.Now, suppose in the second year. (how many years to maturity), interest rates on a similar type of bond increases to 5%. What is the value of the bond? P. 3.Next, after another year, with the market rate still at 5%, what will be the value of the bond? Po 4.Calculate the one-year holding period return between 2 and 3? 5.Going back to the scenario in #1 above, suppose the interest rates fall to 3% the year after Galaxy bonds were issued. What would this do to the value of Galaxy's bonds? P- 6.Axiom Corp. issues bonds with a 6% coupon with interest paid semiannually. If the going rate in the market is 5%, what is the value of this 15-year bond now? Po 7. What is the approximate yield to maturity (YTM) of a bond that has 12 years to maturity, pays an 8% coupon and can be purchased for $1,026.45

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