Bond offers an annual coupon rate

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1. Using the time line technique, calculate the dirty and clean price of a semiannual $1,000 par value bond with three and a quarter years left until maturity that pays a coupon of 5.125% and is yielding 4.50%?

2. A bond offers an annual coupon rate of 5% with interest paid semiannually. The bond matures in seven years. At a market discount rate of 5%, the price of the bond per $100 of par value is closest to:

3. A bank offers a home buyer a 30 ?-year loan at 7 ?% per year. If the home buyer borrows $ 100 000 from the? bank, how much must be repaid every? year?

Reference no: EM131886405

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