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Bond X is issued at par making quarterly coupon payments. Its coupon rate is 8 percent per year and has 5 years to maturity. Assuming
Bond X is issued at par making quarterly coupon payments. Its coupon rate is 8 percent per year and has 5 years to maturity. Assuming its face value is 10,000 dollars and the market interest rate of the bond (YTM) remains unchanged, answer the following question.
1) what do you expect the price of this bond 3 months from now after coupon due is paid?
2) what do you expect the price of this bond 4 months from now?
3) what do you expect the price of this bond 5 months from now?
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