A $1,000 bond has a coupon of 7 percent and matures after twelve years. Assume...
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A $1,000 bond has a coupon of 7 percent and matures after twelve years. Assume that the bond pays interest annually a. What would be the band's price if comparable debt yields 10 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar 5 158 b. What would be the price i comparable debt yields 10 percent and the bond matures after six years? Use Appendix and Appendix D to answer the question. Round your answer to the nearest dollar $ c. Why are the prices different in s and ? The price of the bond in a stelt than the price of the band in d as the principal payment of the bond in als Sent than the principal payment of the band in (in time) d. What are the current yields and the yielde to maturity in a and b? Round your answers to two decimal places, The bond matures after twelve years CY YTM The bond matures after six years CY YTM
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