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b). Consider the following zero-coupon curve: Zero-Coupon Rate (%) 4.00 4.50 4.75 4.90 5,00 Maturity (years) 4 nnual coupon rate? i. What is the price

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b). Consider the following zero-coupon curve: Zero-Coupon Rate (%) 4.00 4.50 4.75 4.90 5,00 Maturity (years) 4 nnual coupon rate? i. What is the price of a 5-year bond with a $100 face value, which delivers a 5% a marks) (6 marks) ii. What is the yield to maturity of this bond? , what is the new pose that the zero-coupon curve increases instantaneously and uniformly by 0.5% price and t he new yield to maturity of the bond? Whet is the impact of this rate increase for the bondholder? (8 marks) e suppose now that the zero-coupon curve remain: stable over time. You hold the bond until maturity What is the annual return rate of your investment? Vhy is this rate different from the yield to maturity iv. W (8 marks)

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