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Let us take the example of a 10-year coupon paying a bond that pays a coupon rate of 5%. Calculate the current yield of the
Let us take the example of a 10-year coupon paying a bond that pays a coupon rate of 5%. Calculate the current yield of the bond in the following three cases: Bond is trading at a discounted price of $950. Bond is trading at par. Bond is trading at a premium price of $1,050.
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