What is the current rate on a bond

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Q.1 You bought a bond for $980 a year ago at 3% AAA, 4-year maturity. Answer the following:

Par Value -

Annual payment (show math) -

Cap gain/loss at maturity -

Total interest at maturity -

Q.2 What is the current rate on a bond with a coupon rate of 4% selling at $1200? Why is the current rate lower than the coupon rate? Show math.

Reference no: EM133036623

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