Explain what is the effect

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Reference no: EM131935730

Question: Assume a $100 face value of abond with a cupon rate of 4%/ yr. and 8 years remainning to maturity. The prevailing interest rate is %10 .

(a) what is the price of the bond?

(b) Assume the bond is selling at $63. Whats the yield to maturity?

Reference no: EM131935730

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