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a. The 7.4%, fifteen-year bond yields 5.4%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon

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a. The 7.4%, fifteen-year bond yields 5.4%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) A bond's credit rating provides a guide to its price. Assume Aaa bonds yield 3.6% and Baa bonds yield 4.6%. Assume a 10% five-year bond with annual coupons and a face value of $1,000. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the bond's price if it is rated as Aaa? b. What is the bond's price if it is rated as Baa? Calculate the durations and volatilities of securities A,B, and C. Their cash flows are shown below. The interest rate is 7%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)

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