An 5-year bond with a 2.50% annual coupon has the following price quotes from a...
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An 5-year bond with a 2.50% annual coupon has the following price quotes from a dealer.
Bid Yield: 4.300%/ Asked Yield: 4.208%
What price does an investor receive in a sale to the dealer? Answer with a whole number rounded to three decimal places, e.g., 102.2379% of par should be entered as 102.238.
2. What is the fair value (PV) of a 12-year bond with an annual coupon of 4.375% priced at a yield (YtM) of 3.650%? Answer with a whole number rounded to three decimal places, e.g., 102.2379% of par should be entered as 102.238.
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