What is the yield to maturity on this? bond

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Reference no: EM132961919

Question - Consider a? five-year, default-free bond with annual coupons of 6% and a face value of $1,000 and assume? zero-coupon yields on? default-free securities are as summarized in the following? table:

Maturity 1 year 2 years 3 years 4 years 5 years

?Zero-Coupon Yields 5.00?% 5.30?% 5.50?% 5.70?% 5.80?%

Required -

a. What is the yield to maturity on this? bond?

b. If the yield to maturity on this bond increased to 6.20%?, what would the new price? be?

Reference no: EM132961919

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