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A $1,000 bond has a coupon of 4 percent and matures after twelve years. Assume that the bond pays interest annually. What would be the

A $1,000 bond has a coupon of 4 percent and matures after twelve years. Assume that the bond pays interest annually. What would be the bond's price if comparable debt yields 6 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 6 percent and the bond matures after six 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 than the price of the bond in b as the principal payment of the bond in a is 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 twelve years: CY: % YTM: % The bond matures after six years: CY: % YTM: %

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