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Question 3: (10 marks) Financial Institution ZEUS issued a new series of bonds on January 1 were sold at par ($1,000), have a 12% coupon,

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Question 3: (10 marks) Financial Institution "ZEUS" issued a new series of bonds on January 1 were sold at par ($1,000), have a 12% coupon, and mature in 12 years, on December 31, 2029. Coupon payments are made annually. ,2017. The bonds 1. What was the ongoing rate of interest i on January 1, 2017? What the YTM of 2. What was the price of the bond on January 1, 2022, 5 years later, assuming that 3. Find the CY and the CGY on the bond on January 1, 2022, given the price of the 4. On January 1, 2023, Zeus' bond sold for $916.42. What was the YTM at that 5. What were the CY and the CGY on January 1, 2023? Zeus' bond on January 1,2017 will be? the level of interest rates had fallen to 10 percent? bond as determined in part 2 above? date

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