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a,b,c thank you QuesTon 2AI5marks] Sakamoto Inc. need to raise fund to finance a residential construction project. A coupon bond of $1,000 face value, 5%

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QuesTon 2AI5marks] Sakamoto Inc. need to raise fund to finance a residential construction project. A coupon bond of $1,000 face value, 5% coupon rate, paying annual coupon, and 5 years to maturity, was offered to the public on 4-Nov-2018. The yield-to-maturity of the bond was 2% on the same date. The bond is rated AAA by a major credit rating agency. a) What is the market price of the bond on 4-Nov-2018? (5 marks) UESTON 415marKS) Sakamoto Inc. need to raise fund to finance a residential construction project. A coupon bond of $1,000 face value, 5% coupon rate, paying annual coupon, and 5 years to maturity, was offered to the public on 4-Nov-2018. The yield-to-maturity of the bond was 2% on the same date. The bond is rated AAA by a major credit rating agency. b) What is the duration of this bond on the same date? (5 marks) Sakamoto Inc. need to raise fund to finance a residential construction project. A coupon bond of $1,000 face value, 5% coupon rate, paying annual coupon, and 5 years to maturity, was offered to the public on 4-Nov-2018. The yield-to-maturity of the bond was 2% on the same date. The bond is rated AAA by a major credit rating agency. ) Six months later, the credit rating agency downgrade the rating of this bond to AA. How the yield rate of this bond change? Briefly explain your answer would YS marks)

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