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Need all parts answered step by step. Thank you. What would be the value of the 10-year bond described in part (c) if, just after

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What would be the value of the 10-year bond described in part (c) if, just after it had been issued, the expected inflation rate rose by 3 per- centage points, causing investors to require a 13 percent return? Is the security now a discount bond or a premium bond? What would happen to the bond's value if inflation fell and rd declined to 7 percent? Would it now be a premium bond or a dis- count bond? d. (1) (2) o What woun to hevaluc of he 10-gear bondove ime f bhe required rate of return remained at (i) 13 percent or (i) remained at 7 percent? What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for $887.002 That sells for $1,134.20? What does the fact that a bond sells at a discount or at a premium tell you about the relationship between ra and the bond's coupon rate? e. (1) What would be the value of the 10-year bond described in part (c) if, just after it had been issued, the expected inflation rate rose by 3 per- centage points, causing investors to require a 13 percent return? Is the security now a discount bond or a premium bond? What would happen to the bond's value if inflation fell and rd declined to 7 percent? Would it now be a premium bond or a dis- count bond? d. (1) (2) o What woun to hevaluc of he 10-gear bondove ime f bhe required rate of return remained at (i) 13 percent or (i) remained at 7 percent? What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for $887.002 That sells for $1,134.20? What does the fact that a bond sells at a discount or at a premium tell you about the relationship between ra and the bond's coupon rate? e. (1)

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