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A treasury bond with a face value of 1000$ is traded in the market at EAR of 9% per year. The quoted coupon rate on
A treasury bond with a face value of 1000$ is traded in the market at EAR of 9% per year. The quoted coupon rate on the bond is 7% paid semiannually and the maturity is 10 years. a. What is the market price of this bond? Which type of bond is it? (par, discount or premium) b. What will be the market price of this bond in 4 years, immediately after interest is paid? Assume no change in market interest rates. c. Assume you purchase the bond today and you sell it after a half year, immediately after the coupon was paid, what is your rate of return
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