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For the following? questions, assume the normal case that coupon payments are? semi-annual

Finance Jan 28, 2023

For the following? questions, assume the normal case that coupon payments are? semi-annual.  a. What is the yield to maturity on a 19?-year, ?5.2% coupon bond if the bond is currently selling for? $1,000?  b.  For the bond? above, suppose that immediately after purchase market rates change to 3.10?%.  If you hold the bond for 4 years and then sell? it, what is your effective annual return on this? investment?  

a. The YTM is      enter your response here ?% ?(enter response rounded to decimal? places; i.e.,? x.xx%)   

b. Your effective annual return is     enter your response here ?% ?(enter response rounded to decimal? places; i.e.,? x.xx%

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