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Business, 21.02.2020 19:41 kkbrookly7496

Below is a list of prices for zero-coupon bonds of various maturities.
Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon)
1 $ 978.14
2 876.02
3 843.70
Required:
a. A 4.6% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be? (Round your answer to 2 decimal places.)
b. If at the end of the first year the yield curve flattens out at 6.5%, what will be the 1-year holding-period return on the coupon bond? (Round your answer to 2 decimal places.)

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Below is a list of prices for zero-coupon bonds of various maturities.
Maturity (Years) Price...

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