A bond with face value $1,000 has a coupon rate of 8%, maturity 10 years, and yield
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A bond with face value $1,000 has a coupon rate of 8%, maturity 10 years, and yield to maturity of 7%.
a. If interest is paid annually, what is the bond’s price?
b. If the bond is selling at $970, is its yield to maturity more or less than 8%?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781264101566
11th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus
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