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1. Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond, assume the company makes semi-annual
1. Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on todays date (May. 28) in its maturity year and the par value is $1,000. The price is a dollar term.
Company Coupon(%) Maturity Price($) Yield
XYZ Inc. 7% May 24, 2028. 976.67
a. What is the bonds yield to maturity?
b. If your required return is 9% APR, would you buy this bond today? Show work to prove why or why not.
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