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A 07.40% annual coupon, 6-year bond has a yield to maturity of 03.40%. Assuming the par value is $1,000 and the YTM is expected not
A 07.40% annual coupon, 6-year bond has a yield to maturity of 03.40%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year:
a) what should the price of the bond be today? (1 point)
b) What is bond price expected to be in one year? (1 point) |
c) What is the expected Capital Gains Yield for this bond? (1 point)
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