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Jun owns a bond with a 4% coupon that pays interest annually. It trades at 114% and matures in 14 years. a. What is its

Jun owns a bond with a 4% coupon that pays interest annually. It trades at 114% and matures in 14 years.

a. What is its yield to maturity?

b. If its interest was paid semi-annually, what would be its yield to maturity?

c. Would you prefer to be paid the annual 4% coupon compound annually or semi-annually?

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