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Consider the following bond: Face value - $1,000: coupon rate - 8%; maturity = 5 years; YTM a. (5 points) What is the value of

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Consider the following bond: Face value - $1,000: coupon rate - 8%; maturity = 5 years; YTM a. (5 points) What is the value of this bond today and in 2 years? 7% b. (5 points) What are the current yield and capital gains yield for this bond this year and in two years? Consider an unconventional bond that will make no coupon payments for the next 4 years. After that, the coupon payments will be $1000 per year for 3 years. After that, coupon payments will be $1500 per year for 6 years. The bond matures in 13 years and has face value of $20,000. The yield to maturity for this bond is 8%. a. (6 points) What is bond value today

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