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  3. 5. a 3-year bond with par value of $1,000 making a

5. A 3-year bond with par value of $1,000 making annual coupon payments of $50...

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Finance

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5. A 3-year bond with par value of $1,000 making annual coupon payments of $50 is priced at $1,025. (8 points) What is the yield to maturity of the bond? b. What will be the realized compound yield to maturity if the 1-year interest rate for the following three years are: 11 = 3%, r2 = 4%, r3 = 5%

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