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B. Calculation questions 1. A governmen t bond issued in Germany has a coupon rate of 5%, face value of euros 100 and maturing in

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B. Calculation questions 1. A governmen t bond issued in Germany has a coupon rate of 5%, face value of euros 100 and maturing in five years. The interest payments are made annually. Calculate the price of the boncd (in euros) if the yield to maturity is 3.5%. 2. Explain how 1.5% change in required yield would influence the price of the bond in the above question 3, A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments

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