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A five - year French government bond ( OAT ) makes annual coupon payments of 4 . 0 % and offers a yield to maturity
A fiveyear French government bond OAT makes annual coupon payments of and offers a yield to maturity of annually compounded. The face value is euro.
Questions:
a What is the price of this bond?
b Now, suppose the bond price has suddenly moved to euro. What is the yield to maturity of the bond now?
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