Reference no: EM13850484
The price of a bond with 4% annual coupon and $100 face value in year T is $90....
a. Is the yield to maturity greater than, the same, or less than to the annual coupon rate? Explain in one sentence.
b. Calculate the current yield in period T.
c. Calculate the return (in %) on the bond.
d. Did the YTM of the bond increase or decrease in 3c? Explain in one sentence.
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