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QUESTION 24 A two-year coupon bond with a 5% coupon rate is valued at $916.79 and another two-year coupon bond with a 10% coupon rate
QUESTION 24 A two-year coupon bond with a 5% coupon rate is valued at $916.79 and another two-year coupon bond with a 10% coupon rate is valued at $1,007.13. Given this information, what will be the value of a two-year bond with an 8% coupon rate? The par values of all three bonds are $1,000. A. $1,039.63 B. $1,076.95 OC. $970.99 OD. $1,004.36 O E. $937.89 QUESTION 25 Consider a coupon bond with the market value of $1,084.25. If the yield to maturity increases from the current rate of 6% to 8%, what would be the new bond value? Duration of the bond is 4.34 and the convexity is 22.0500. A. $1,021.21 OB. $979.19 OC. $1,063.23 D. $1,042.22 E. $1,000.20
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