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8 points Save A bond has a coupon rate of 85% and pays coupons semi-annually. The bond matures in 11 years and the yield to

8 points Save A bond has a coupon rate of 85% and pays coupons semi-annually. The bond matures in 11 years and the yield to maturity on similar bonds is 7.5%. Is this a par, premium or discount bond? What is the price of the bond? APV . (1+r)! EAR = (1 + APRym - 1 APR - period rarem After tax yleld = (1-tax rate)

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