Calculate the price that investor y paid for the bond

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Show all working else penalties will apply. Exchange rates should be rounded off to 4.d.p., whereas all other calculator-values are to be rounded off all to 2d.p. Clearly label your answers with corresponding question number and/or its associated parts

Question a. Calculate the price of the bond if it is held to maturity.

Question b. Calculate the price of the bond if it was sold today.

Question c. Assume you sold the bond today to Investor X. On 26th January, 2025 Investor X resold the bond in the secondary market to Investor Y. At the time of sale, current yields on similar bonds were 7% p.a. Calculate the price that Investor Y paid for the bond.

Reference no: EM132554579

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