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A US bond with time to maturity of one year has a price of 931. Its coupon rate is 6%. a. Compute its yield to

A US bond with time to maturity of one year has a price of 931. Its coupon rate is 6%.

a. Compute its yield to maturity. It is mandatory to carry out all the computations manually. It is forbidden to report a result obtained in Excel or with a financial calculator, which will not be counted for the score.

b. What is the new bond price that you would observe, in case the yield to maturity changed, moving from the value computed in step a) to a value of 7%?

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