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Suppose the prevailing interest rate, or yield to maturity is 6%. All bonds have $100 face value.....

a. Price a discount bond of 10 year maturity. Show your work.

b. Write down the formula you would use to price an annual coupon bond with annual coupon rate of 3% and 30 year maturity.

c. Calculate the price of the bond in question 2b.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91420259

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