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What would be the price of the bond

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Lion Ltd has just issued a bond with 5-year maturity and a face value of $1,000. The coupon rate is 6%, paid annually. Assume the required yield to maturity is 8%.

Problem a. What is the bond price?

Problem b. If the yield to maturity drops to 5%, what is the bond price? 

Problem c. If the bond pays coupon semi-annually instead (assume yield to maturity is 8%), what would be the price of the bond?

Reference no: EM132917309

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