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BOND VALUATIONS In the problems below, all coupon and yield rates are quoted as nominal rates payable semiannually (so r(2) and j(2) respectively). Use the

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BOND VALUATIONS In the problems below, all coupon and yield rates are quoted as nominal rates payable semiannually (so r(2) and j(2) respectively). Use the following convention: the issue date is t = 0 and the first coupon payment occurs at t 1; t is measured in 1's of a year. If not specified otherwise, P refers to the price of the bond at the issue date t=0. = Bond A has face value of $100, coupon rate of 4.75% and current fair price P = $85.16. Bond B has face value of $100, coupon rate of 6.25% and the current fair price of $95.05. Both bonds have the same yield rates and the same terms (time to maturity). Find the nominal yield rate and the term for both bonds. Hint: you will have two equations (price of bonds A and B) with two unknowns (yield rate and the time to maturity)

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