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On 1 0 th February 2 0 2 1 , Jerome purchases a government bond worth $ 4 0 0 , with a maturity of
On th February Jerome purchases a government bond worth $ with a maturity of years, face value of $ and a coupon rate of paid annually. The first coupon payment will be received a year from now ie on th February The yield to maturity offered by equally risky bonds is currently Such a yield to maturity stays constant over the next two years. On th February just after receiving the first coupon payment, Jerome decides to sell this bond. It turns out that, on that day, the new yield to maturity offered by equally risky bonds is At what price will Jerome be able to sell his bond? No Excel please
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