Required yield to maturity on comparable-risk bond

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Reference no: EM132015611

1. If you are an investor to UK and would like to go long in pound,

• You are afraid of price of pound going up

• You are afraid of price of pound going down

• You are expecting price of pound going up

• You are expecting price of pound going down

2. Calculate the value of a bond that matures in 11 years and has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent.

The Value of the bond is $____

Reference no: EM132015611

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