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Q1: A: A 5-year bond has an 8.88 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is

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Q1: A: A 5-year bond has an 8.88 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 9.25 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments. B: Based on the above example calculate the price of the bond if the YTM rose to be 11 percent. C: Based on the above examples what is the relationship between interest rates YTM and bond prices

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