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What is the bond's yield to maturiyl What is the current yield of the bond? 3. An Investor purchased each of the following bonds at
What is the bond's yield to maturiyl What is the current yield of the bond? 3. An Investor purchased each of the following bonds at a yield to maturity of 5% lrmnediately after she purchased the bonds, interest rates fell to 7% What is the percentage change in the price of each bond after the decline in interest rates? (Assume semiannual compounding) Bond type Price at 8% YTM Price at 7% YTM Percentage 10year 10% coupon 11 10-year zero coupon 4. A government bond that matures in 10 years has a yield of 6% A 10-year rporate bond has a yield of 9%. Assume that the liquidity prmam on the corporate bond is 0.5%, what is the default risk premium on the corporate bond? ENG 9P
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