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Consider a five-year, default-free bond with annual coupons of 3% and a face value of $1,000 and assume zero-coupon yields on default-free securities are as

image text in transcribed Consider a five-year, default-free bond with annual coupons of 3% and a face value of $1,000 and assume zero-coupon yields on default-free securities are as summarized in the following table: a. What is the yield to maturity on this bond? b. If the yield to maturity on this bond increased to 3.20%, what would the new price be? a. What is the yield to maturity on this bond? The yield to maturity on this bond is \%. (Do not round until the final answer. Then round to three decimal places.) b. If the yield to maturity on this bond increased to 3.20%, what would the new price be? The new price would be $ (Do not round until the final answer. Then round to the nearest cent.)

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