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1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent.

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1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond? What is the YTM on the bond? Vinya Inc. has 7.5 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent, what is the current bond price? Assume the par value of a bond is $1,000. Do not round intermediate calculations and round your final answer to 2 decimal places. 2

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