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can you answer thata step by step. ? 5(4 pts) You buy a $1000 face value bond today with 7annual coupon that is priced to

can you answer thata step by step. ? image text in transcribed
5(4 pts) You buy a $1000 face value bond today with 7annual coupon that is priced to yield 28.unnualcouer that ispricedtoyle whe bol that ressellveapanese sfor YT10.28, ainsa esi nd sells for $910.28S p a) What will the bond sell for ing year, if the YTM remains atg%? Price in 1 year if interest rates remain constant-$ constant s22 21 What will the bond sell for in 1 year if interest rates drop, and in one year the YTM on this ul8 b) Nt llar bond is 8.4%? Price if interest rates drop $ c) What is your realized yield if you buy the bond today and sell the bond in 1 year (after the coupon payment has been made) when interest rates have dropped to 8.4%? (Don't forget about the coupon payment) Realized yield

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