What is the price of the bond

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1. Calculate the price of a five-year, $1,000 par value bond that makes semiannual payments, has a coupon rate of 8 percent, and offers a yield to maturity of 7 percent. Recalculate the price assuming a 9 percent YTM. What is the general relationship that this problem illustrates?

2. A $1,000 par value bond makes annual interest payment of $75. If it offers a yield to maturity of 7.5 percent, what is the price of the bond?

Reference no: EM131329254

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