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please explain by steps. thank you a. A ten-year bond pays semi-annual coupons of 40. The bond has a par value of 1,000 and is

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a. A ten-year bond pays semi-annual coupons of 40. The bond has a par value of 1,000 and is redeemable at its par value. The bond is purchased to yield a nominal interest rate of 10% compounded semi- annually Determine the amount of premium amortization in the 10th coupon payment. (10 points) b. Bond X is a 1,000 bond that pays 3% annual coupons for 20 years. The YTM for the bond is 4% annual effective. Bond Y is a 1,000 bond that pays 3% semi-annual coupons for 10 years. The redemption amount of the bond is C. Both bonds have the same YTM and price. Determine C. (10 points)

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