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Suppose a 10-year bond has a face value of $1000 and coupon rate of 8%. a) What should be the price if you want a

Suppose a 10-year bond has a face value of $1000 and coupon rate of 8%.

a) What should be the price if you want a yield of 10%?

b) What should be the price if you want a yield of 8%?

c) If you pay $900 for the bond, would your yield be higher or lower than the coupon rate?

d) If you pay $1100 for the bond, calculate the current yield.

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