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31) CVS issued $40 billion worth of bonds to help pay for its acquisition of Aetna. The bonds are currently priced at $959.06. They are
31) CVS issued $40 billion worth of bonds to help pay for its acquisition of Aetna. The bonds are currently priced at $959.06. They are 30-year bonds that pay interest semi-annually. They carry a coupon rate of interest of 2.5%. a) [4 pts] How much will CVS have to pay in interest every 6 months on each bond? b) [4 pts] What is the current yield-to-maturity the market is requiring on these bonds (round your answer to the 1/10th of a percent - e.g., X.X%)
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