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Hi. I need help with the following question: A $1000 bond has a coupon of 6% and matures after 10 years. a. What would be
Hi. I need help with the following question: A $1000 bond has a coupon of 6% and matures after 10 years. a. What would be the bond's price if comparable debt yields 8% b. What would be the price if comparable debt yields 8% and the bond matures after 5 years c. Why are the prices different in a and b? d. What are the current yields and the yields to maturity in a and b? Please give details as to how you arrived at your figures. Like why you are using a particular % or formula to get your answer. Thanks so much
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