What should the bond be selling for two years

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1. A 9% coupon bond has 12 years left until maturity. It is selling for $1067.44. If its yield rises by 100 basis points between today and two years from now, what should the bond be selling for two years from now? The bond pays interest semiannually.

2. You purchase one Facebook October 160 put contract for a premium of $5.35. What is your maximum possible profit? Assume each contract is for 100 units.

Reference no: EM131905542

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