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Please help solve. Thank you so much Ouestion 9 ( 15 point) Mark wants to choose a bond to add to his portfolio, and he
Please help solve. Thank you so much
Ouestion 9 ( 15 point) Mark wants to choose a bond to add to his portfolio, and he is indecisive between the below three bonds. Bond 1: Richman Bond is a 7% coupon bond which has a face value of $25,000, it gives out semi-annual payments and will mature in 20 years. Bond 2: GoldWealth Bond will mature in 25 years and has a face value of $25,000 and pays $650 every six months. Bond 3: MoneyWell Bond is an 8% coupon bond with semi-annual payments. The bond has a face value of $20,000, and a current yield of 5.17%, a. Given that the interest rate is 4% compounded semi-annually, what are the market prices of these bonds? b. Rank the bonds in terms of their interest rate risk c. Suppose three years later the price of GoldWealth Bond had decreased to $26,274.84 what is the interest rate prevailing at that timeStep by Step Solution
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