EXERCISE VI A company issues bond loan, redeemable at maturity, with the following characteristics Par...
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EXERCISE VI A company issues bond loan, redeemable at maturity, with the following characteristics Par value of a bond: 200 euros Redemption value: 200 euros Coupons paid annually on the anniversary of the issue date Maturity: 4 years Nominal rate: 6%. On the issuance day, the bond offers a yield to maturity of 6%. a) What is the issue price of this bond? One year later, just before the payment of the first coupon, the price of this bond is 210 euros. b) What is its yield to maturity? c) What can we conclude
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