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5a. Smirch Corp. issues a 7-year bond with a face value of $1,000, an 8% coupon rate, and a yield to maturity of 9%. The

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5a. Smirch Corp. issues a 7-year bond with a face value of $1,000, an 8% coupon rate, and a yield to maturity of 9%. The bond pays interest semiannually. What is the price of the bond? (4 points) 5b. What will the price of the Smirch Corp. bond be 2 years from today, assuming the yield to maturity remains at 9%? (2 points)

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