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a. 1. [4 points] A 12-year, $1,000 par value bond has 8 years left to maturity and its coupon rate is 8%, with interest paid
a. 1. [4 points] A 12-year, $1,000 par value bond has 8 years left to maturity and its coupon rate is 8%, with interest paid semi-annually. Answer the following questions for this bond. If the required return on this bond (the current market rate for similar bonds) is 6%, will this bond sell for a premium or a discount (no calculations are needed)? b. What is the bond's current price if the market rate (required return) is 4.5%? If the bond is currently quoted at (selling for) $939.50 in the market, what is the Yield to Maturity? c
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