Describe the basic characteristics of alternative investment

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1.Describe the difference between absolute and relative valuation. 2. Describe the basic characteristics of alternative investments 3. If the coupon rate on XYZ is 6%, annual yield to maturity is 10%, is the bond trading at par, premium or discount? Assume 20 years to maturity and annual coupons. 3a. Assume 1 year passes and yield curve remains constant. Calculate the new price of the bond 3.b. Verify YTM=% price change + Coupon Yield.

Reference no: EM13279328

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