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Question 2: Calculate the yield to maturity for a corporate bond issued by Daimler Chrysler with the price of $800.20, where the bond has a
Question 2: Calculate the yield to maturity for a corporate bond issued by Daimler Chrysler with the price of $800.20, where the bond has a maturity of 11 years, a face value of $1,000, and the annual interest payment is $70. Assume that interest payments are made annually at the end of each year. What is the future value of the corporate bond? Should the interest rates decrease to 3%, how many years does the bond take to mature? If the interest rate increases to 7%, what should be the annual interest payment for the bond to be sold at the same price of 800.2
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