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Suppose today a 12 percent coupon bond sells at par. Two years from now, the req

ID: 2705473 • Letter: S

Question

Suppose today a 12 percent coupon bond sells at par. Two years from now, the required return on the same bond is 10 percent.  The coupon rate in two years would be _____ and the YTM would be ______. Question 22 options: 8%; 10% 10%; 12% 12%; 10% 10%; 10% Suppose today a 12 percent coupon bond sells at par. Two years from now, the required return on the same bond is 10 percent.  The coupon rate in two years would be _____ and the YTM would be ______. Suppose today a 12 percent coupon bond sells at par. Two years from now, the required return on the same bond is 10 percent.  The coupon rate in two years would be _____ and the YTM would be ______. 8%; 10% 10%; 12% 12%; 10% 10%; 10% 8%; 10% 10%; 12% 12%; 10% 10%; 10% 8%; 10% 10%; 12% 12%; 10% 10%; 10%

Explanation / Answer

12%; 10%

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