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Please answer B and C Thanks,, 8. Suppose the coupon rate on a bond is 10% paid annually, the yield to maturity is 12%, the
Please answer B and C Thanks,,
8. Suppose the coupon rate on a bond is 10% paid annually, the yield to maturity is 12%, the face value of the bond is $1,000, the maturity is 2 years, and the price of the bond is $966.20. a. According to his information, you can say that this bond is sold on the market: (2 pts) A) At par value. B) At a premium C) At a discount b. Using the information provided above, calculate the duration of the annual coupon bond (4 pts): c. If the yield to maturity increased to 12.1% and duration is 1.92 years, what would the new price of the bond be? (4 pts)Step by Step Solution
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