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The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value) Maturity (years) 1 2 3 4 5 Price

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The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value) Maturity (years) 1 2 3 4 5 Price (per $100 face value) 94.52 89.68 85.40 81.65 78.35 The yield to maturity for the four year zero-coupon bond is closest to O A. 2.6% OB. 0.18% OC. 5.2% OD. 10.4% What must be the price of a $5,000 bond with a 6,9% coupon rate, semiannual coupons, and ten years to maturity if it has a yield to maturity of 3% APRO O A $3,701 O B. $5,552 O C. $4.626 OD. $6,477 The Loughran Corporation und zero-coupon corporate bonds with a five year maturity Investors believe there is a 20% chance that Logan will default on these bonds. If Lougandos de investors expect to receive 25% of the promised payo at maturity leg. 50 25 cents per dollar they we promised) investors require a 50% expected retum on their investment in these bonds, which of the following statements most accurately describes the price per $100 face and current YTM of these bonds? O A This bond is priced at $50 78 100 face value with a YTM of 10.8% OB This bond is priced at $5.00 per 100 face value with a YTM of 3.3% OC. This bond is priced at 563 52 per $100 face value with a YTM of 6.0% OD. This bond is priced $74735100 face value with a YTM of 6.0% O E. This bond is priced at $3.52 per 100 face value with a YTM of 9.5%

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