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A 5-year, four percent quarterly coupon bond, with a par value of $1,000, sells for $993. What is the bonds yield to maturity? Is the
- A 5-year, four percent quarterly coupon bond, with a par value of $1,000, sells for $993. What is the bonds yield to maturity? Is the bond selling for a premium or discount, why?
- What is the duration of a three-year bond that pays a coupon of 4% semiannually, has a par value of $1,000 and a yield to maturity of 3%?
- Two-year Treasury bills are currently yielding 0.674%, and the rate on three-year Treasury notes is 0.973%. The one-year interest rate expected in one year is 1.00%. According to the unbiased expectation theory, what is expected one-year rate during year 3?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
11th Edition
9355322208, 978-9355322203
