Consider a bond which has a face value of $2,000, a coupon of $50, and is known to have a yield to maturity of 8%. Suppose that the bond matures in five years. What is the present value of the bond?     $199.63     $1,526.77     $1,560.80     $373.85

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A: Step 1: Step 2: Step 3: Step 4:

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A: Yield to maturity (i) can be calculated by using the following formula.

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Q: Compute the value of F in the diagram below. 250, 200 150 * $100 3 Years 0 1 2 i = 10%

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Q: Find the limiting value of Macaulay duration as maturity is increased to infinity of an 8% coupon…

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Q: A $10,000 bond with a coupon rate of 1% and a yield of 2% will pay a yearly interest amount of:

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