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A $ 1 , 0 0 0 bond has a coupon of 6 percent and matures after eight years. Assume that the bond pays interest
A $ bond has a coupon of percent and matures after eight years. Assume that the bond pays interest annually.
What would be the bond's price if comparable debt yields percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
$
What would be the price if comparable debt yields percent and the bond matures after four years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
$
Why are the prices different in a and b
The price of the bond in a is
Select
than the price of the bond in b as the principal payment of the bond in a is
Select
than the principal payment of the bond in b in time
What are the current yields and the yields to maturity in a and b Round your answers to two decimal places.
The bond matures after eight years:
CY:
YTM:
The bond matures after four years:
CY:
YTM:
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