What are the current yields given the prices determined in

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A 1,000 bond has a coupon rate of 8% and matures after ten years.

a. What is the current price of the bond if the comparable rate of interest is 8%?

b. What is the current price of the bond if the comparable rate of interest is 10%?

c. What are the current yields given the prices determined in parts a and b?

d. Why are the prices in a and b and the current yields in c different?

Reference no: EM13616464

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