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4. What are the cash flows you receive from a $1,000 coupon bond with a 6% coupon rate and: a) semiannual coupon payments; b) annual
4. What are the cash flows you receive from a $1,000 coupon bond with a 6% coupon rate and: a) semiannual coupon payments; b) annual coupon payments; Calculate the price of the bond if its yield to maturity is 3%. Calculate the price of the bond if its yield to maturity increases to 5%. Compare your answers and explain why the prices are different. Is the bond trade at discount, par, or premium in each case
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