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This question has three subquestions on bond pricing, or relevant topics. 4 (a) A 30 year bond matures at its face value of $100. It
This question has three subquestions on bond pricing, or relevant topics. 4 (a) A 30 year bond matures at its face value of $100. It pays semiannual coupons of $6. Calculate the price of the bond if the annual nominal interest rate is 7.5%. 4 (b) Suppose a bond has a price today of $800, a coupon rate of 4%, and six years remaining to maturity. If interest is paid semi-annually, what is this bond's yield to maturity? + (c) Consider the following three bonds (with the same maturity and face value of $100) and their prices: 4 Bond (Coupon rate, semiannual) 0%. 7.5%. 15% Price 96.375 103.404 106.0625 Are these prices correctly stated relative to each other? State clearly your arguments. (d) There is a 12% coupon bond on the market that sells for par value. What is the yield to maturity of this bond? State your reason clearly if it is not identifiable
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