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Question 35 12 pts Consider a corporate bond with a coupon rate of 5.00% and a face value of $1,000, maturing on September 15, 2025.
Question 35 12 pts Consider a corporate bond with a coupon rate of 5.00% and a face value of $1,000, maturing on September 15, 2025. (a) Suppose on September 15, 2020, the bond had a yield to maturity of 4.50%. What should be the price of this bond on September 15, 2020? (b) If the yield to maturity on this bond increases to 5% on September 15, 2021, what should be the price of this bond on September 15, 2021? (c) For someone who bought the bond on September 15, 2020 and sells the bond on September 15, 2021, what is the one-year rate of return on this bond
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