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a. Consider a five-year bond that pays interest payments to investors semi-annually. It is issued by the Omega Corporation located in Oakland, California. The Face

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a. Consider a five-year bond that pays interest payments to investors semi-annually. It is issued by the "Omega" Corporation located in Oakland, California. The Face value of the bond is $1.000 dollars, the coupon rate of the bond is 12% and the ongoing market interest rate is 8%. Calculate the value of the bond, the Current Yield, the I Yield to Maturity and the Capital Gains Yield respectively, b. Economic conditions change in the country and the ongoing rate of interest increases to 14%. Calculate the value of the bond. c. Employ a well-drawn diagram and properly show the equilibrium path of a Par Bond. Premium Bond and a Discount Bond respectively. d. What is the condition that must prevail to have a Par Bond

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