What are the current level of the prime rate-discount rate

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Reference no: EM131991394

1. You purchase a bond with an invoice price of $1,110. The bond has a coupon rate of 10.2 percent, semiannual coupons, and there are three months to the next semiannual coupon date. Required: What is the clean price of the bond? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

2. What are the current level of the prime rate, the discount rate, and the three-month T-bill rate?

3. The duration of GE bond you own is 5.00 years. Currently, interest rates are 6.00%, but you believe the Fed is about to increase interest rates by 22.00 basis points. What is the predicted price change for your bond?

Reference no: EM131991394

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