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The par value of a bond is less than its current price. Which one of the following applies to this bond?

--the answer for #1 I got was $44.21 decrease & it was incorrect.

Question 1 6 pts A 4.25% coupon rate bond with 5 years left to maturity has a par value of $1,000. What is the change in the

The par value of a bond is less than its current price. Which one of the following applies to this bond?

--- I put yeild to maturity is greater than the coupon rate & that was incorrect

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Answer #1

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1 Bond price at 3.75% 2 Less: Bond price at 4.75% 1,022.42 =PV(3.75%,5,42.5,1000,0)*-1 978.20 =PV(4.75%,5,42.5,1000,0)*-1 $ 3

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