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The interest rate remains unchanged

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Reference no: EM131948548

Consider a bond with an 8 year maturity. The bond pays a semi-annual coupon. Its coupon rate is 12%. The bond is currently selling for $1150.

a. What is the bond’s YTM?

b. What will the bond’s price be after 3 years if the interest rate remains unchanged?

c. If you sell the bond after 3 years, what is your return from owning the bond?

Reference no: EM131948548

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