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  3. illustrate the relationships between measures of b

Illustrate the relationships between measures of bond yield for the following bond: $1,000 par...

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Illustrate the relationships between measures of bond yield for the following bond: $1,000 par value 3-year maturity Bond pays $40 coupon every 6 months Bond currently sells for $888.88 1. Is the bond a premium bond or a discount bond? 2. What is the coupon rate? 3. What is the current yield? 4. What is the yield to maturity? (use Excel) 5. What is the bond-equivalent yield

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