What risks may an investor who holds these bonds be exposed


A) Calculate the price of a 5 year corporate bond with a par value of $1000 that makes annual payments, has a coupon of 3% and currently offers a yield to maturity (YTM) of 4%

B) Recalculate the price of the bond under the assumption that the bond makes semi-annual coupon payments.

c) What risks may an investor who holds these bonds be exposed to? briefly describe how each of them relates to the bond's value/

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Financial Management: What risks may an investor who holds these bonds be exposed
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