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You are considering saving some money to invest in an apartment in 5 years from now and so you decide to invest in a bond.
You are considering saving some money to invest in an apartment in years from now and so you decide to invest in a bond. You are considering two potential bond investments: a A zerocoupon bond that will get your desired return, due to mature in years and a face par value of JPY How much would you be willing to pay today based on the given information about the bond? How much will you gain by investing in this bond? b A levelcoupon bond with face par value, maturity date in years and coupons are paid semiannually at an interest rate of and YTM Yield to Maturity Which option would you choose?
You are considering saving some money to invest in an apartment in years from now and so you decide to invest in a bond. You are considering two potential bond investments:
a A zerocoupon bond that will get your desired return, due to mature in years and a face par value of JPY How much would you be willing to pay today based on the given information about the bond? How much will you gain by investing in this bond?
b A levelcoupon bond with face par value, maturity date in years and coupons are paid semiannually at an interest rate of and YTM Yield to Maturity Which option would you choose?
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