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  3. 1. a bond with two years to maturity is selling at

1. A bond with two years to maturity is selling at RM1,056.40. Its face value...

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Finance

1. A bond with two years to maturity is selling at RM1,056.40. Its face value is RM1,000 and the coupon is 10 percent annualized.

a. Determine the bonds YTM assuming interest rates are unchanged.

b. Plot the likely price trajectory until maturity.

c.Why would a rational investor want to invest in a bond that is likely to have negative capital gains?

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