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please solve a-e. thank you! (Bond valuation reiationships) Arvons Public UEibes issued a bond that pays 580 in interest, with a $1.000 par value. it
please solve a-e. thank you!
(Bond valuation reiationships) Arvons Public UEibes issued a bond that pays 580 in interest, with a $1.000 par value. it matures in 20 years. The marker's required yold fo maturty on a comparablerisk bond is 6 percent. a. Calcuabe the value of the bond b. How does the value change it the makefs requied vela to maturfy on a congwatio-mk bond 0 ) inceases to 12 porcent or (o) docreases to 5 porcent? c. Explan the mplcatoos of your answers in part b as they relate to interestabe risk, premium bonds, and discount bonds d. Assume that the bond matwes in 15 years instead of 20 years Roccompule your answers in parts a and b 6. Explan the inplcations of your answess in pat d as fivey relale to inceeest-rate risk. piemim bonds, and discount bonds a. What is the valke of the bond it the maners requed yead to malinty on a comparable mx bond is 6 percent?? (Round lo the nearest cent) b. 00 What is twe value of the bond it the inarkef's requed yed to makinty on a comporable-ink bond increates 612 percent? (Riound to the nearost cont) Step by Step Solution
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