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Business, 09.11.2019 05:31 marissastewart533

1. the current zero-coupon yield curve for risk-free bonds is as follows:

maturity (years): 1 2 3 4 5
ytm: 5.04% 5.53% 5.77% 5.97% 6.06%

what is the price per $100 face value of a 2 year, zero-coupon, risk-free bond?

2. suppose a 10 year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.99.

a. what is the bond's yield to maturity ? (expressed as an apr with semiannual compounding) round to 2 decimal places

b. if the bond's yield to maturity changes to 9.1% apr, what will be the bond's price? round to the nearest cent

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1. the current zero-coupon yield curve for risk-free bonds is as follows:

maturity (yea...
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