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(5) Suppose that you are considering investing in a four-year bond that has a face value of $1,000 and a coupon rate of
Posted: Sun May 29, 2022 7:29 pm
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- 5 Suppose That You Are Considering Investing In A Four Year Bond That Has A Face Value Of 1 000 And A Coupon Rate Of 1 (22.67 KiB) Viewed 13 times
(5) Suppose that you are considering investing in a four-year bond that has a face value of $1,000 and a coupon rate of %6. (2 points) Suppose that you purchase the bond and the next day the market interest rate on similar bonds falls to %5. What will the price of your bond be now? What will its current yield be?