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4. A five-year bond has a 4% coupon and 1,000 face value. But here's the thing: - At the end of year 3, along with

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4. A five-year bond has a 4% coupon and 1,000 face value. But here's the thing: - At the end of year 3, along with the coupon, it pays 200 of its principal -Then at the end of year 4 it pays the 4% on the remaining principal. And it pays an additional 200 of principal. Finally, at maturity it pays coupon on whatever principal was outstanding that year, plus remaining principal What is its price at a yield-to-maturity of4%? What is its percentage price change when the yield increases to 5%? Compare the price change of this bond to that of an ordinary frond whh en yeld increases 4% to 5%

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