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On April 1, 2016, Weyland-Yutani, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $65.

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On April 1, 2016, Weyland-Yutani, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $65. [We are assuming that the 2021 coupon has just been redeemed.] Initially, the bond was sold at the discounted price of $985. On April 1, 2021, this bond was selling for $1,015. The market rate of interest for a riskless corporate bond, of this maturity, was 3.8% on April 1, 2016, which reflects market expectations about future rates of inflation. The market rate of interest for a riskless corporate bond, of this maturity, was 3.5% on April 1, 2021, which reflects market expectations about future rates of inflation. 7. What was the yield to maturity for this bond on April 1, 2021? [To 2 decimal places.] 8. What was the risk premium for this bond on April 1, 2021? [To 2 decimal places.] 9. It is now April 1, 2021 and suddenly the Federal Reserve announces a massive program to reduce inflation. Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%. If there is no change in the risk premium On April 1, 2016, Weyland-Yutani, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $65. [We are assuming that the 2021 coupon has just been redeemed.] Initially, the bond was sold at the discounted price of $985. On April 1, 2021, this bond was selling for $1,015. The market rate of interest for a riskless corporate bond, of this maturity, was 3.8% on April 1, 2016, which reflects market expectations about future rates of inflation. The market rate of interest for a riskless corporate bond, of this maturity, was 3.5% on April 1, 2021, which reflects market expectations about future rates of inflation. 7. What was the yield to maturity for this bond on April 1, 2021? [To 2 decimal places.] 8. What was the risk premium for this bond on April 1, 2021? [To 2 decimal places.] 9. It is now April 1, 2021 and suddenly the Federal Reserve announces a massive program to reduce inflation. Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%. If there is no change in the risk premium

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