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Consider an 5.0% coupon bond selling for $951.10 with 3 years until maturity makingannualcoupon payments. The interest rates in the next 3 years will be,

Consider an 5.0% coupon bond selling for $951.10 with 3 years until maturity makingannualcoupon payments. The interest rates in the next 3 years will be, with certainty,r1= 5%,r2= 7%, andr3= 8%. Calculate the yield to maturity and realized compound yield of the bond.(Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding.(Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.)

Price Maturity (years) Bond-Equivalent Yield to Maturity
$ 575.00 10 %
$ 500.00 10 %
$ 610.00 20 %
$ 12 6.80 %
$ 10 6.80 %
$ 567.97 3.90 %

Consider a bond (with par value = $1,000) paying a coupon rate of 8% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity.

a.

Find the bond's price today and 6 months from now after the next coupon is paid.(Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Current price $
Price after six months $

b.

What is the total (6-month) rate of return on the bond?(Omit the "%" sign in your response.)

Rate of return %

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