You have just noticed in the financial pages of the local newspaper that you can buy a bond ($1,000 par) for $800 If the coupon rate is 10 percent, with annual interest payments, and there are 10 years to maturity, you should make the purchase if your required return on investments of this type is ...

i Is this True or False True Explanation If you buy a bond for 800 that pays a coupon rate of 10 you ...

You have just noticed in the financial pages of the local newspaper that you can buy a

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You have just noticed in the financial pages of the local newspaper that you can buy a bond ($1,000 par) for $800. If the coupon rate is 10 percent, with annual interest payments, and there are 10 years to maturity, you should make the purchase if your required return on investments of this type is 12 percent.
(i) Is this True or False?
(ii) Find the price of the bond