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You purchase a Chrysler bond with a par value of $1,000 that carries a semiannual coupon rate of 4%, has a 5-year maturity and sells
- You purchase a Chrysler bond with a par value of $1,000 that carries a semiannual coupon rate of 4%, has a 5-year maturity and sells at par.
- What will be the bonds price one year later if the YTM has decreased by 1%?
N = N =
I= I =
PV = PV =
PMT = PMT =
FV = FV =
P/Y = P/Y =
- If you sell the bond at the price (a) above, what was is your HPR (Holding Period Return)? Round your answer to two (2) decimal places.
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