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5. A manager purchases a $1,000 par value, 5% coupon bond that pays interest on a semi-annual basis. The bonds current yield is 5.00% and
5. A manager purchases a $1,000 par value, 5% coupon bond that pays interest on a semi-annual basis. The bonds current yield is 5.00% and the YTM is 5.45%. The bonds price is closest to:
a. $980 d. $1,100
b. $990 e. There is not enough information.
c. $1,000
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