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    Dec 8, 2011, 03:55 PM
    Subordinated bond
    You have a subordinated bond with a face value of $1,000, a coupon rate of 9%, and a remaining maturity of 5 years.
    -Current market price is $1,126.37. What is the current yield to maturity?
    -One year later, the yield to maturity increases by 2%. What is the current market price of the bond?
    -One more year passes. The yield to maturity has decreased 1% in the past year. What is the current market price of the bond?
    -At maturity, what do you receive?

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