Question: A newly issued 1 0 - year maturity, 4 % coupon bond making annualcoupon payments is sold to the public at a price of $

A newly issued 10-year maturity, 4% coupon bond making annualcoupon payments is sold to the public at a price of $800. The bonawill not be sold at the end of the year The bond is treated as an original-issue discount bond.
a.Calculate the constant yield price.
b. What will be an investor's taxable income from the bond over the coming year?

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