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Pricing Bonds for Trasi Mehmet Trasi, a bond portfolio manager, asks you to calculate various bond prices for corporate bonds issued by the Affinity Coal
Pricing Bonds for Trasi Mehmet Trasi, a bond portfolio manager, asks you to calculate various bond prices for corporate bonds issued by the Affinity Coal Company. Trasi provides you with the following term structure information for the bonds: A 2 -year bond with a 4% Coupon Rate and 8% YTM and a 5 -year with a 3.5% Coupon Rate and 9.5% YTM. a) At what prices should these bonds trade? b) Which of these bonds would you buy? Why
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