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A. The following is an extract of bonds from the Globe-investor website. The extraction didn't go well because there are some pricing errors. Without calculating
A. The following is an extract of bonds from the Globe-investor website. The extraction didn't go well because there are some pricing errors. Without calculating the price of each bond, indicate which prices seem to be reported incorrectly, and explain why? All bonds have a face value of 1000.
Bond | Price | CPN (%) | Yield (%) |
A | 950.5 | 3.00 | 1.04 |
B | 990.9 | 4.00 | 1.65 |
C | 1,015.5 | 2.00 | 2.62 |
D | 1090.5 | 2.5 | 1.40 |
E | 905.5 | 2.5 | 3.06 |
F | 919.60 | 2.6 | 3.53 |
B. If you are a bondholder, would you be sad or happy when the yield to maturity increases? Explain
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