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please help 6. You are analyzing the following US (semi-annual) corporate bonds and both are issued by the same company. Assume par value is $1,000
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6. You are analyzing the following US (semi-annual) corporate bonds and both are issued by the same company. Assume par value is $1,000 for each bond. Bond Price (as % of par) 100.00 55.13 Coupon (%) 3 A Maturity (years) 20 20 B 0 a) Calculate the YTM of each bond. Which would you invest in? b) If interest rates move up by 0.5% (50 basis points), how much will the price of each bond change (per 100 par value)? c) You decide to purchase $1,000,000 in bond B, how many bonds must you buy (ignore any transaction costs)Step by Step Solution
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