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ON EXCEL Question 8 Consider a five-year, default-free bond with annual coupons of 5% and a face value of S1000, yield 4.5% a. Without doing
ON EXCEL
Question 8 Consider a five-year, default-free bond with annual coupons of 5% and a face value of S1000, yield 4.5% a. Without doing any calculations, determine whether this bond is trading at a premium or at a discount. Explain. b. What is the yield to maturity on this bond? answer 4.5% If the yield to maturity on this bond increased to 5.2%, what would the new price be? e Step by Step Solution
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