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A $1,000 par value bond has a 8 percent coupon, which is paid on a...

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Finance

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A $1,000 par value bond has a 8 percent coupon, which is paid on a semiannual basis. It matures in either 2 years or 10 years. Current yields on similar bonds are either 6 percent or 10 percent. a. Calculate the price of the bond for the four possibilities. (Use a Financial calculator to arrive at the answers. Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Price of the bond 2 years 6 percent 10 percent 10 years 10 percent 10 years 6 percent 2 years $ $ $ $ b. What is the relationship between price and yield? Price and yield ar viclek to neteen Drelated. c. What is the rele n bond price changes and time to maturity? Bond prices change Click to select for a given yield change. Inversely Directly

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