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Faculty of Economics and Administrative Sciences Department of Banking and Finance BAF 321 - Financial Institutions and Markets EPOKA UNIVERSITY Part II. Exercises. There are

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Faculty of Economics and Administrative Sciences Department of Banking and Finance BAF 321 - Financial Institutions and Markets EPOKA UNIVERSITY Part II. Exercises. There are 40 total possible points for this part. Exercise 1. (15 points) 10 year, 796 coupon bond with a face value of $1,000 is currently selling for $881.65. Compute your rate of return if you sell the bond next year for $890.10. e 2. (15 points) e the present value of $1.000 with 5 years to maturity if the required annuali oupon rate is 5%. What happens to the price of bond

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