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An analyst needs to value a 3-year, 5% annual coupon payment bond, which is not actively traded. The analyst was able to find two

An analyst needs to value a 3-year, 5% annual coupon payment bond, which is not actively traded. The analyst was able to find two other bonds with comparable credit quality: bond 1: 2-year, 4.5% annual coupon payment bond at a price of $110; bond 2: 5-year, 5.5% annual coupon payment bond at a price of $108. Suggest a pricing method and provide the value of the bond in question according to it.

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One pricing method that can be used in this scenario is the yieldtomaturity YTM method The YTM is th... blur-text-image

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