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Compute if the coupon is semi-annual payments

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Reference no: EM132820161

Bond Calculation:

Assume par values of $1,000 unless otherwise instructed

Problem (a) What is the price of a 10 year bond (annual payments) with a coupon rate of 7% if the market rates are 8%? Is the bond selling at a premium or discount?

Problem (b) Re-compute if the coupon is semi-annual payments.

Problem (c) Re-compute if the coupon is quarterly payments.

Reference no: EM132820161

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