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Author Question: Three-year T-Notes with a coupon of 10% are trading for $951.96 to yield 12%. (With a $1,000 face ... (Read 70 times)

bobypop

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on: Apr 25, 2021

Question 1

The yield to maturity for a bond selling at par is
◦ unchanged once the bond sells at par.
◦ below the coupon rate.
◦ above the coupon rate.
◦ a value that remains fixed, unlike the coupon rate which changes daily.
◦ equal to the coupon rate.

Question 2

Three-year T-Notes with a coupon of 10% are trading for $951.96 to yield 12%. (With a $1,000 face value.) Microsoft has just issued a three year bond with a 10% coupon and a face value of $1,000. Analysts estimate that the default risk premium on Microsoft bonds is 3% and the liquidity risk premium is the same as the T-Note. What is the fair price for the Microsoft bond today?
◦ $885.84
◦ $956.52
◦ $857.25
◦ $1000
◦ $918.71
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by bobypop on Apr 25, 2021

scikid

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bobypop

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

cam1229

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Reply 3 on: Yesterday
Wow, this really help

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