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How much an investor would have to pay for the bond

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Reference no: EM132807693

A 20-year, zero-coupon bond was recently being quoted at 29.691% of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1 ,000.

Problem 1: Then, using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 10.260%.

Problem 2: The current yield on this bond is %.

Problem 3: The promised yield of this issue is %.

Reference no: EM132807693

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