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Final Exam: Investment Engineering - show all your works! Name: BOSSARD Gabin, 22512003 30. (6 pts) A four-year 6.0% coupon bond (face value= $100 )

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Final Exam: Investment Engineering - show all your works! Name: BOSSARD Gabin, 22512003 30. (6 pts) A four-year 6.0% coupon bond (face value= $100 ) is selling to yield 7%. The bond pays interest annually. (a) What is the price of the four-year 6.0% coupon bond selling to yield 7% ? (b) What is the price of this bond one year later assuming the yield is unchanged at 7% ? (c) What is the price of this bond one year later if the yield decreases to 6.2%

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