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Problem 7 Intro A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.2% and pays interest twice
Problem 7 Intro A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.2% and pays interest twice a year. The annual market interest rate for similar bonds is 3.3%. BAttempt 1/10 for 10 pts. Part 1 What is the price of the bond (in S)? No decimals Submit B Attempt 1/10 for 10 pts Part 2 2 years later, the market interest rate for similar bonds has gone up to 4 3%, what s the new price of the bond (in s)
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