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14- ABC's has an outstanding bond with a coupon rate of 5.5 percent that matures in 12 years. The bond pays interest semiannually. If the
14- ABC's has an outstanding bond with a coupon rate of 5.5 percent that matures in 12 years. The bond pays interest semiannually. If the face value of the bond is $1,000 face value and the yield to maturity is 7.13 percent, find the following "Show your formula and calculations": a- Is this bond issued at discount, premium, or at par? Why? b- What is the value of the bond at the date of issuance? C- What is the capital gain yield in the first year? Show your calculation d. What is the selling price of this bond after two years from the date of issuance? Show your formula/calculation/explanation
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