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4) Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of S1,104.09 a. what is the

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4) Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of S1,104.09 a. what is the bond's YTM (expressed as an APR with semiannual compounding)? b. If the bond's YTM changes to 8% APR, what will the bond's price be? 5) Suppose a 5-year, S1,000 bond with annual coupons has a price of S990 and a yield to maturity of 6%. What is the bond's coupon rate? 6) consider the following bonds Bond Coupon tale (anl payments) Malurity (years 0% Which of the bonds is most sensitive to a 1% drop in interest rate (YTM) and why? Provide an intuitive explanation for your answers

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