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PLEASE SOLVE IT! Consider a semiannual 4% coupon bond with a $1,000 face value that has 12 years to maturity. (a) Calculate the market price
PLEASE SOLVE IT!
Consider a semiannual 4% coupon bond with a $1,000 face value that has 12 years to maturity.
(a) Calculate the market price of this bond using a yield to maturity (YTM) of 4.2%. (3 marks)
(b) Is the bond in Part (a) a premium, par or discount bond? Explain why. (3 marks)
(Include enough working to show you understand the calculations.)
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