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1. (10) Wine and Roses, Inc. offers an 4.0 percent coupon bond with semiannual payments and a yield to maturity of 6 percent. The bond
1. (10) Wine and Roses, Inc. offers an 4.0 percent coupon bond with semiannual payments and a yield to maturity of 6 percent. The bond matures in 20 years. a. What is the market price of a $1,000 face value bond? b. What is the current yield of the bond? c. Suppose that the bond will make a coupon payment in 65 days and an owner of this bond is contemplating to sell it. What is the accrued interest the seller is entitled to receive in this case? Assume 30 days/month.
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