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4 Part A An investor in bond has approached a bond analyst to ask him a few questions concerning his investment in fixed income :

4 Part A An investor in bond has approached a bond analyst to ask him a few questions concerning his investment in fixed income : A. His investment in bond A has the following information Par Value Coupon $10,000 4% Maturity YTM 4 years 6% 1. Graphically show if the bond is trading at premium or discount 2. Calculate the value of the bond if the coupon is paid annually 3. Calculate the value of the bond if the coupon is paid semi-annually 4. If the market value of the bond is $10,150, what will be the yield to maturity of the bond? 5. Explain in details two of the main features of a bond 6. When do you think a bond issuer is going to default on a bond? 7. Calculate the current yield of bondimage text in transcribed

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