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A 10% semi-annual P1 million bond is currently selling at 1,250,000, to mature in 15 years. a. Determine the yield to maturity (YTM) of the

A 10% semi-annual P1 million bond is currently selling at 1,250,000, to mature in 15 years.

a. Determine the yield to maturity (YTM) of the bond.

b. If the bond pays quarterly coupon, and has a YTM of 12%, what will be the bonds price?

c. If the current YTM increases, what do you expect would happen to the price of the bond?

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