Current price of the bond if the comparable rate of interest

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Reference no: EM131585150

A $1,000 bond has a coupon rate of 4 percent and matures after ten years.

a) What is the current price of the bond if the comparable rate of interest is 4 percent?

b) What is the current prices of the bond if the comparable rate of interest is 6 percent?

c) What are some current yields give the prices determined in parts (a) and (b)?

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

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Reference no: EM131585150

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