Virginia Tech FIN FIN MISC 1. Suppose that you see a bond quoted with a bid price of 93 and an ask price of 93.25. What does this mean in terms of bond prices. For example, if
4. Using the same bond in the previous problem, assume that the market rate is 10% now instead of 3%. Calculate the market price of the bond when the maturity is 10, 7,4, and one.
What happens to the price of the bond over time?
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