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Consider a coupon bond with a time to maturity of 4 years. This bond, if things work out, pays a coupon of $50 per year

Consider a coupon bond with a time to maturity of 4 years. This bond, if things work out, pays a coupon of $50 per year at the end of each year. The bond has a face value = $1,000.

a) What is the price of the bond if the yield to maturity is 6%?

b) How would the introduction of default risk change the value of the bond above?

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