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Task 4) You buy a 9% coupon, 17-year maturity bond, which was issued in 2018. The yield to maturity is 10%. a) Is this a
Posted: Sun Jun 05, 2022 6:47 am
by answerhappygod
- Task 4 You Buy A 9 Coupon 17 Year Maturity Bond Which Was Issued In 2018 The Yield To Maturity Is 10 A Is This A 1 (12.63 KiB) Viewed 42 times
Task 4) You buy a 9% coupon, 17-year maturity bond, which was issued in 2018. The yield to maturity is 10%. a) Is this a discount or a premium bond? Explain your answer! b) What is the price of the bond today (in 2020)? c) Tell (without any calculation) the price at which the bond would trade if today the yield to maturity would be exactly 9 %. Support your answer.