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1. A firm issues bonds with a maturity of 12 years, a 9% coupon rate, and a face value of $1,000. The bonds make

 

1. A firm issues bonds with a maturity of 12 years, a 9% coupon rate, and a face value of $1,000. The bonds make annual coupon payments. If the yield to maturity is 11.5%, I what is the price of the bond? (4 points) 2. A bond has a face value of $1,000 and a price of $840. The bond matures in 18 years, has a coupon rate of 10%, and pays interest annually. a. What is the bond's yield to maturity? (4 points) b. What is the bond's current yield? (2 points)

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