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1. You are considering the following corporate bond: $1,000 8% Par value Coupon rate Time to maturity Yield to maturity 4 years 6% a. What

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1. You are considering the following corporate bond: $1,000 8% Par value Coupon rate Time to maturity Yield to maturity 4 years 6% a. What is the current bond price if the coupons are paid semi-annually? (3 marks) b. Is the bond a discount or premium bond? Explain. (2 marks) c. Calculate its current yield. (2 marks)

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