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Sir
In calculating the coupon for the new bond, i tried a different approach:
1. i computed the YTM of the existing bond … (i have seen this being done in other questions) – i got a ytm of 3%
107.81=5.57/(1+r) + 5.57/(1+r)2 + 105.57/(1+r)3
2. then computed the coupon using the above YTM. I got a 3% YTM but i get a coupon of 3%
can u plz comment?
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