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You purchased 10 year bonds at an issue price of $990 whose face value is $1000 The annual coupon rate is 3% What is the YTM Five years later market rates of interest are 5% What will be the

  1. You purchased 10 year bonds at an issue price of $990 whose face value is $1000. The annual coupon rate is 3%.

    1. What is the YTM?
    2. Five years later market rates of interest are 5%. What will be the price of the bonds?
    3. If you expect interest rates to hold at 5% or less, what should you do with the bonds?

     

 

Apr 29 2020 View more View Less

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