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Bond V is a discount bond making annual payments. The bond pays a 4percent coupon, has a YTM of 7 percent, and has 10 years
Bond V is a discount bond making annual payments. The bond pays a 4percent coupon, has a YTM of 7 percent, and has 10 years to maturity.
a. What is the bond price right now?
b. If interest rates remain unchanged, what will the price of this bond to be one year from now?
c.If interest rates remain unchanged, what will be the bonds price in 5 years?
d.What will be the bonds price in 10 years?
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