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Question 2 (7.5 marks) What are the two types of risks that an investor incurs when he or she is investing in bonds? Explain. Question

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Question 2 (7.5 marks) What are the two types of risks that an investor incurs when he or she is investing in bonds? Explain. Question 3 (20 marks) Question 4 (7.5 marks) ABC Corporation issued 10,000 units of $1,000 face value bonds that mature in 27 years and have a 6% coupon rate that is paid semi-annually. If the bonds were sold at 109.5% of their face value, calculate the yield to maturity. Question 2 (7.5 marks) What are the two types of risks that an investor incurs when he or she is investing in bonds? Explain. Question 3 (20 marks) Question 4 (7.5 marks) ABC Corporation issued 10,000 units of $1,000 face value bonds that mature in 27 years and have a 6% coupon rate that is paid semi-annually. If the bonds were sold at 109.5% of their face value, calculate the yield to maturity

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