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Chapter 6, Problem 6.8WUE

Assume a 5-year Treasury bond has a coupon rate of 4.5%.

a. Give examples of required rates of return that would make the bond sell at a discount, at a premium, and at par.

b. If this bond’s par value is $10,000, calculate the differing values for this bond given the required rates you chose in part a.

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Chapter 6 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License