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Q 1- Consider a bond that pays a 10% coupon rate of interest, has a par value of $1,000 and matures in 4 years. Suppose

Q 1- Consider a bond that pays a 10% coupon rate of interest, has a par value of $1,000 and matures in 4 years. Suppose also that the market rate of interest for such a bond is 8%. Calculate bonds price?

Q 2- Suppose a 10-year bond carries a 6% coupon rate and pays interest annually. The required rate of return of the bond is 8%. What should be the fair value of the bond?

Q 3 - Suppose 5.2 coupon bond, with semiannual coupons, face value of 2000 , 20 years to maturity, 1466 price. What is Current yield?

Q 4 - If we require a 7.1 real return and we expect inflation to be 9.5 , and the growth is 25%. Also, the risk is 20% what is the nominal rate?

Q 5 - Suppose 10% coupon bond, with semiannual coupons, face value of 1,000, 20 years to maturity, $1,200 price. What is the Yield to maturity?

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