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Assume the zero-coupon yields on default-free securities are as summarized in the following table: (Click on the following icon order to copy its contents into

image text in transcribed Assume the zero-coupon yields on default-free securities are as summarized in the following table: (Click on the following icon order to copy its contents into a spreadsheet.) ZMi Consider a five-year, default-free bond with annual coupons of 4% and a face value of $1,000. a. Without doing any calculations, determine whether this bond is trading at a premium or at a discount. Explain. b. What is the yield to maturity on this bond? c. If the yield to maturity on this bond increased to 4.20%, what would the new price be

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