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Problem, A bond yield to maturity YTM is 3%, semi- annual coupon is 8%, 6 years semi. < a. b. What is the price?

 

Problem, A bond yield to maturity YTM is 3%, semi- annual coupon is 8%, 6 years semi. < a. b. What is the price? What is the "current yield"? < C. If the treasury rate is 1%, what is the credit spread? < d. If the reinvestment rate is 2%, what is the brokerage account worth with 10 bonds at maturity? e. If it is callable at par in two years, what is the yield to call YTC? < A stock is priced at $100, has a beta of 1.3. The market return is 12%, the risk-free return is 2%. Using the CAPM, calculate the value of the stock in one year.

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a What is the price The price of the bond can be calculated using the following formula Price PV of coupons PV of principal The present value PV of th... blur-text-image

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