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- Consider 5-years bond with face value of $1'000 and coupon rate of 6%, paid semi-annually which is traded for a price of $1'030 one

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- Consider 5-years bond with face value of $1'000 and coupon rate of 6%, paid semi-annually which is traded for a price of $1'030 one year after issue. What is its yield to maturity (YTM)? How do you call such a bond? - Assume that the above-mentioned note has a high credit rating and its risk premium is 0.5%. What can you say about risk-free interest rate for same period of investment on this market

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