Company Waterloo is a manufacturer of flushing toilets that sell predominantly in Japan. The company issues a

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Company Waterloo is a manufacturer of flushing toilets that sell predominantly in Japan. The company issues a 5-year bond with 5%

coupon rate and £1,000 face value. The bond currently has a yield to maturity of 8.56%. Calculate the value of the bond. (Assume annual interest payments and that a coupon payment has recently been made.)

a. £860

b. £923

c. £1,005.4

d. £1,006

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