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d 1 Please help me solve this with detailed steps, i am confused with market price and present value. are they the same or dofferent?
dPlease help me solve this with detailed steps, i am confused with market price and present value. are they the same or dofferent?
A What is the current price present value of a bond with a coupon rate of a maturity date in years, a face value of $ and a yield to maturity of
B For the bond described in A calculate the current yield and compare it with the yield to maturity.
How would the comparison of current yield and yield to maturity change if the maturity date was in years you dont have to redo the calculation, just describe w it would change
C Is the bond described in A a discount or premium bond?
PlpbgduwgduighfuiwD Suppose the yield to maturity falls to and everything else is the same as in A
What does this imply for the market price present value for the bond?
When the yield to maturity is is the bond a discount or premium bond?
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