Question: Company A has issued a bond with a face value of $1,000 and a coupon rate of 5%. The bond matures in 5 years and

Company A has issued a bond with a face value of $1,000 and a coupon rate of 5%. The bond matures in 5 years and has a yield to maturity of 6%.

a. What is the coupon rate of a bond?

b. What is the annual interest payment for the bond?

c. What is the market price of the bond?

d. What is the current yield of the bond?

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