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Consider a 10-year, semi-annual interests, $1,000 face value bond. Its annual coupon rate is 6%, but investors in the market want 9% yield to maturity.
Consider a 10-year, semi-annual interests, $1,000 face value bond. Its annual coupon rate is 6%, but investors in the market want 9% yield to maturity. (a) Without doing any computation, its market value should be greater or less than the face value? Explain briefly. (b) Compute the (present) value of this bond
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