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What is the price of a ten year bond

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Reference no: EM132869409

Question - Bond Calculation - Assume par values of $1,000 unless otherwise instructed.

(a) What is the price of a 10 year bond (annual payments) with a coupon rate of 7% if the market rates are 8%? Is the bond selling at a premium or discount?

(b) Re-compute if the coupon is semi-annual payments.

(c) Re-compute if the coupon is quarterly payments.

Reference no: EM132869409

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