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1. A corporate bond has a par value of $1,000 with a 10.5% annual coupon rate. If investors required rate of return(YTM) is 10.5%, the

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1. A corporate bond has a par value of $1,000 with a 10.5% annual coupon rate. If investors required rate of return(YTM) is 10.5%, the price the bond should sell for today is closest to? 2. Biggs Corporation has a $1,000 par, 9% coupon, semiannual-pay bond with 8 years left to maturity. The current price of this bond is $1,175. The annual effective YTM is closest to? 3. The the credit rating on a bond issue, the lower the borrowing firm's cost of debt its risk of default and therefore, the 4. If a $1,000 par value bond with $100 coupon interest payments is currently selling above par value, market interest rates are than the coupon rate, and the bond is said to be selling at 5. The YTM on a zero-coupon bond is 9.8%. If the par value is $1,000 and the bond matures in 50 years, the current yield is and the capital gains yield on this bond is ? 6. ABC company can call in its $1,000 par value, 7.5% coupon, annual pay bonds in 12 years for $1,095 per bond. The bonds are selling today for $1,000. The expected yield to call for investors who purchase the bonds today is closest to

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