Assume a 100 face value of abond with a cupon rate of 4 yr, Ask an Expert

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Assume a $100 face value of abond with a cupon rate of 4%/ yr. and 8 years remainning to maturity. The prevailing interest rate is %10 .

(a) what is the price of the bond?

(b) Assume the bond is selling at $63. Whats the yield to maturity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92266792

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