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Bond Valuation a. Today, you want to sell a $1,000 face value, zero coupon bond you currently own. The bond matures in 10 years. How
Bond Valuation
a. Today, you want to sell a $1,000 face value, zero coupon bond you currently own. The bond matures in 10 years. How much will you receive for your bond if the yield to maturity (YTM) is currently 8 percent? [10 points]
b. Today, you want to sell a $1,000 face value, 10% coupon bond you currently own. The bond matures in 10 years. How much will you receive for your bond if the yield to maturity (YTM) is currently 15 percent? [10 points]
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