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Tracer Manufacturers issued a 10-year bond six years ago. The bonds maturity value is $1,000,...

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Finance

  1. Tracer Manufacturers issued a 10-year bond six years ago. The bonds maturity value is $1,000, and its coupon interest rate is 6 percent. Interest is paid semiannually. The bond matures in four years.
  1. If investors require a return equal to 5 percent to invest in similar bonds, what is the current market value of Tracers bond?

  1. One year later(i.e. The bond matures in 3 years), the market price of the bond is $1,010. Compute the yield to maturity for the bond.

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