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14 On January 15, 2017 the XYZ Company issued a 25 year bond. The bond has a coupon rate of 7%, coupons are paid once
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On January 15, 2017 the XYZ Company issued a 25 year bond. The bond has a coupon rate of 7%, coupons are paid once a year and the face value of the bond is $1,000. Today (April 24, 2022) the bond trades at a price of $1,005.69. The yield on the bond today must be: O a. Equal to 7% O b. Insufficient information, we need to know the price of the bond when it was issued Less than 7% O c. O d. Greater than 7% Oe. Insufficient information, we need to know the YTM when the bond was issued Step by Step Solution
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