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Consider a five-year, default-free bond with annual coupons of 6% and a face value of $1,000 and assume zero-coupon yields on default-free securities are as

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Consider a five-year, default-free bond with annual coupons of 6% and a face value of $1,000 and assume zero-coupon yields on default-free securities are as summarized in the following table: Maturity Zero-Coupon Yields a. What is the yield to maturity on this bond? b. If the yield to maturity on this bond increased to 6.20%, what would the new price be? 1 year 5.00% 2 years 5.30% 3 years 5.50% a. What is the yield to maturity on this bond? The yield to maturity on this bond is%. (Round to three decimal places.) 4 years 5.70% 5 years 5.80%

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