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You buy a 7 percent coupon, 10-year maturity bond, which was issued in 2015. The yield to maturity is 6 percent. a) Is this a

You buy a 7 percent coupon, 10-year maturity bond, which was issued in 2015. The yield to maturity is 6 percent. a) Is this a discount or a premium bond? Explain your answer! (4 points) b) What is the price of the bond today (in 2017)? (4 points) c) Tell (without any calculation) the price at which the bond would trade if today the yield to maturity would be exactly 7%. Support your answer.

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