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A $1000 bond has a coupon rate of 8% and matures after 10 years. a) What is the current price bond if the comparable rate

A $1000 bond has a coupon rate of 8% and matures after 10 years.

a) What is the current price bond if the comparable rate of interest is 8%.

b) What is the current price bond if the comparable rate of interest is 10%

c) What are the current yields given the prices determined in parts (a) and (b)

d) Why are the prices in (a) and (b) and the current yields in (c) different?

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