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a) Carpenter, Ine, has 8 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the
a) Carpenter, Ine, has 8 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price? And if YTM decreases to 5 pereent then what will be the impact on bond's value? Why? 07 b) Differentiate between coupon rate and YTM. What happens to bond's value if both are equal and if both and different? 03
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