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A bond has a face value of $1,000, a maturity date of 2 years, it pays a 4% coupon rate every year, and has a

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A bond has a face value of $1,000, a maturity date of 2 years, it pays a 4% coupon rate every year, and has a yield to maturity of 5%. What is the price of this bond? Attach File QUESTION 12 The current price of a bond is $950. It has a face value of $1,000, a maturity date of 2 years and pays a 4% coupon rate every year. Calculate the price if the yield is 5%, and when it is 9%. Use linear interpolation to estimate the correct yield. (Hint: The previous problem solves for the price of the bond with a yield of 5% ). Attach File

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