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1. ABC Corporation issues a bond which has a coupon rate of 10.20%, a yield to maturity of 9.75%, a face value of $1,000, and
1. ABC Corporation issues a bond which has a coupon rate of 10.20%, a yield to maturity of 9.75%, a face value of $1,000, and a market price of $1,150. What is the annual interest payment? Round to two decimal places. 2. A shipping company sold an issue of 16-year $1,000 par bonds to build new ships. The bonds pay 8.25% interest, compounded semiannually. Today's required rate of return is 6.80%. How much should these bonds sell for today? Round to two decimal places. 3. Assume a company has an issue of 19-year $1,000 par value bonds that pay 4.5% interest, compounded annually. Further assume that today's required rate of return on these bonds is 6%. How much would these bonds sell for today? Round to two decimal places
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