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a) Calculate the price of a bond with nominal valueK 1,000 maturi ty 5 years and coupon rate 6.2%; for the following values of yield
a) Calculate the price of a bond with nominal valueK 1,000 maturi ty 5 years and coupon rate 6.2%; for the following values of yield to maturity: 4.5% 6.2% (10 marks) ii. b) Compare the values of yield to maturity to the coupon rate and explain the relationship that exists between nominal value and bond price
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