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answer both questions please A 10-year bond has a par value of $1,000 and a coupon rate of 5 percent. During the first six months
answer both questions please
A 10-year bond has a par value of $1,000 and a coupon rate of 5 percent. During the first six months afler the bond was issued, the inflation rate was 1.3 percent. By how much does the principal of the bond increase? What is the coupon payment after six months A bond you are interested in pays an annual coupon of 4 percent, has a yield to maturity of 6 percent and has 13 years to maturity. If interest rates remain unchanged, what would be the value of this bond 8 years from now and also 10 years from now? Par value of the .bond is $ 1000 Step by Step Solution
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