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Solve the problems using the formulas below. Current rate = coupon payment/current price Current price = coupon payment/current rate You purchased a bond at par
- Solve the problems using the formulas below.
Current rate = coupon payment/current price
Current price = coupon payment/current rate
You purchased a bond at par value that has a coupon rate (%) of 4%. New bonds were recently issued at 3%. You need to sell your bond. What is the new price of your bond? Why did the price change?
You bought a bond for $975 with a coupon of 6%. Your bond is now worth $875. What is the current rate?
please show step-by-step work. Thank you
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