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show all steps please CHAPTER 4 Price of a bond = present value of all coupon payments and par value all discounted at the YTM

show all steps please
CHAPTER 4 Price of a bond = present value of all coupon payments and par value all discounted at the YTM YTM = yield to maturity of the bond **When semi-annual coupon payments, remember to change the N,I/Y, and PMT*4 CurrentYield=currentpriceanmualcouponpayment Capital Gains Yield =PtPt+1Pt YTM (Yield to Maturity) = Current Yield + Capital Gains Yield rd=r+IP+DRP+LP+MRPrd=rL+DRP+LP+MRP ( rd= cost of debt, r= real risk-free rate, IP= inflation premium, rkF= nominal risk-free rate, LP= liquidity premium, DRP = default risk premium, MRP = maturity risk premium) corporate bond? 0.50% 3.50% 2.50% 1.50%

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