A bond has a coupon rate of 3375 pays coupons semiannually


A bond has a coupon rate of 3.375%, pays coupons semiannually, and has a maturity of 5 years.

1. If the yield to maturity is 4.20%, calculate the current cost of a bond with a par value of $1000.

2. What is the current yield on the bond?

3. Assume that one year has passed and that the yield to maturity is 6%, what is the value or cost of the bond.

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Financial Management: A bond has a coupon rate of 3375 pays coupons semiannually
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