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a. Consider a bond with a face value of 100, 5 years to maturity and a coupon rate of 6%, paid annually i. Identify and

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a. Consider a bond with a face value of 100, 5 years to maturity and a coupon rate of 6%, paid annually i. Identify and explain the factors that affect the price of this bond. Maturity (Duration), Interest rate (yield to maturity) (6 marks) credit risk. Inflation. ii. Assuming bonds of similar risk in this market are currently offering a yield of 4%, calculate the price of the bond. 00 (4 marks) (148) Adelete

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