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Please answer B and C and show your work so I can walk through it myself also. Assume the zero - coupon yields on default
Please answer B and C and show your work so I can walk through it myself also. Assume the zerocoupon yields on defaultfree securities are as summarized in the following table:
Consider a year, defaultfree bond with annual coupons
of and a face value of $
b What is the yield to maturity on this bond?
c If the yield to maturity on this bond increased to what would the new price be
b What is the yield to maturity on this bond?
The yield to maturity on this bond is
Round to two decimal places.
Data table
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